Brazil’s GDP Fall, Worse Than Bad News

The announcement by the Brazil’s statistics bureau, the IBGE, that the Brazilian GDP growth dropped 1.2% in the third quarter, compared to the second quarter was a big shock to the experts in economy.

Miguel José Ribeiro de Oliveira, vice president of the trade association of financial executives, administrators and accountants (Associação Nacional dos Executivos de Finanças, Administração e Contabilidade) (Anefac), declared that the market was expecting bad news, but not that bad.

"When the IBGE announced a negative number it really had a negative effect," said Oliveira.

"It shows that the high interest rates are punishing the industrial sector," he said, adding that the interest rate is more than reasonably high to have caused such a harsh drop in economic activity.

The good news was that there was third quarter GDP growth: it was up 1% compared to the same period in 2004.

Bonus Global 2034

Brazil raised US$ 500 million on Tuesday, November 29, with another offering of government bonds that mature in 2034, known as Bonus Global 2034.

This follows a US$ 1.5 billion emission made in January 2004, and an emission of US$ 500 million in May of this year.

The emission was led by Merrill Lynch and Barclays Capital. The bonds got 99.325% of face value with a yield of 8.311%. Interest payments on these bonds are made every six months.

ABr

Tags:

You May Also Like

Brazil Once Again Invited to G8 Meeting

Brazilian Minister of Finance, Antonio Palocci, leaves today for the Russian capital, Moscow, where ...

Uniting Brazilians and Arabs Through Film

The Brazilian Ministry of Foreign Relations wishes to organize a cinema exhibit in parallel ...

Election in Sí£o Paulo, Brazil: Who Cares More for the Poor?

Marta Suplicy (PT) has laid out part of her second round strategy: she’s going ...

Hostages Taken by Brazilian Indians Are Freed

Members of four Brazilian Indian groups, the Krikati, Gavião, Awa-guajá and Guajajara, have now ...

Brazil Rushing to Join Space Club

Brazil’s space program needs investment of US$ 200 million per year for the next ...

Rio Answers to 11% of All Brazilian Exports. US Is Main Destination

Exports from the state of Rio de Janeiro grew 31.5% in the first half ...

Brazil: Past Haunts Lula’s Government

John Fitzpatrickby: AB  At this time last year, when it was becoming apparent that ...

Brazil and Venezuela Ready to Start Joint Oil Refinery

A dispute that lasted almost two years ended last January 14. The new refinery ...

Inflation Fears Bring Market Down in Brazil

Brazilian stocks fell, yesterday, alongside lackluster trading in the U.S. Brazilian equities suffered as ...

José Dirceu, Lula’s Chief of Staff, Was Mensalão’s Mastermind, Says Brazil Supreme

Brazil’s ex-president Luiz Inácio Lula da Silva’s chief of staff masterminded a vote-buying scheme ...