Brazil is set to implement a string of difficult measures that, despite negative short-term effects, will help to put economic growth back on track, Planning and Budget Minister Nelson Barbosa said.

“As bad as the eventual short-term effects of some measures might be, they are expansionist in the medium-term,” Mr Barbosa said in an interview to TV channel Globo News.

He added: “They restore confidence, increase the economy’s predictability and cause growth to return faster. Improving confidence will bring back investment and that will allow growth to resume.”

The measures include an increase in electricity prices and potential cuts to government investment. The moves are designed to curb public spending.

“The fiscal situation still is delicate,” Mr Barbosa said. “So it’s appropriate for us to start with a preliminary reduction in expenses.”

Analysts surveyed by Bloomberg forecast Brazil’s economy will expand 0.85 percent in 2015 after growing an estimated 0.2 percent in 2014.