Brazil’s government is preparing sharp cuts to the country’s very high labour costs as a way of boosting productivity and growth, Guido Mantega, finance minister, has told the Financial Times.

“We have the chance to turn the global economic crisis into an opportunity,” Mr Mantega said. “We want to make a qualitative leap in productivity and put Brazil at the forefront of global growth. These measures will make it possible for a range of industries to compete on world markets.”