Brazil’s Central Bank Bets on 4% GDP Growth and 4.3% Inflation

Brazil’s Central Bank (BC) estimates that inflation will amount to around 4.30% in 2006. This is the projection for the Broad Consumer Price Index (IPCA) contained in the quarterly inflation report released by the bank today, June 28.

This estimate is lower than the 4.5% target set by the National Monetary Council (CMN) and higher than the 4.04% forecast made by market analysts in the BC’s most recent Focus bulletin survey, which is conducted on a weekly basis.

The report retains the projection of 4% for this year’s growth in the Gross Domestic Product (GDP), the total of wealth produced in the country. According to the report, the GDP grew 3.4% in the first quarter of this year in comparison with the first quarter of 2005 and 1.4% in comparison to the final quarter of 2005.

According to the BC, the Brazilian economy is increasingly shock-resistant, mainly as a result of the "consistent" decline of inflation, "hefty" trade surpluses (exports minus imports), the generation of "adequate" primary surpluses (what the government saves to pay debt interest expenses), and the reconstitution of international reserve levels, which, according to the report, should present a "substantial improvement."

ABr

Tags:

You May Also Like

Brazil’s First Offer of Funds for Research Gets Inundated by Requests

An unprecedented scheme launched by Brazil’s Science and Technology Ministry on September 6 to ...

Only a Civic Guerrilla War Can Save Brazil

Brazilians will not be able to explain to future generations why the people who ...

Strong Real Hurts Brazilian Agribusiness

New data for the Brazilian government show that weak performance in Brazil’s agricultural sector ...

Brazil Exports 6% Less Coffee But Earns 14% More

Brazilian exports of coffee reached 2.1 million bags of coffee in August, which generated ...

With 30,000 Articles Brazil Is 13 in the World in Scientific Output

In the list of countries that produced the most science in the world last ...

Brazil’s Petrobras Picks FMC as Undersea Supplier

U.S.-based FMC Technologies, Inc. announced April 20 that it has been chosen to supply ...

Brazil Uses G8 Summit as Showcase for Its Biofuel Programs

Brazilian President Luiz Inácio Lula da Silva was invited to participating in the G8 ...

Rio’s Christ the Redeemer, One of the Modern World’s 7 Wonders, Is 80

On October 12, the same day Brazilian Catholics honored their patron saint, Nossa Senhora ...

The Guarani-Kaiowa Indians of Mato Grosso do Sul, Brazil

Brazilian Court Evicts Indians from Their Traditional Land

A federal court of Mato Grosso do Sul issued a writ of entry in ...

Brazil: Starving at Home to Fatten Speculators

The Brazilian economy continues to be the cave of Ali Baba transformed into a ...