Brazil Grows 6% in First Half and Expects 5.5% Growth in 2008

    Brazilian industry

    Brazilian industry According to the latest release from the IBGE (Brazilian Institute of Geography and Statistics). Brazil's economy expanded 6.1% in the second quarter of 2008 compared to the same period a year ago and 1.6% over the previous quarter, Similarly in the first half of this year Brazil's GDP increased 6% compared to the same period a year ago.

    In the second quarter fixed capital investments advanced 5.4% over the first quarter and comparing the two half years (07 and 08), the increase was 16.2%. The farming sector was particularly dynamic having increased 7.1% over the second quarter of last year and 5.2% when the two half years are compared.

    Services grew 1.3% in the second quarter while the accumulated growth, January/June was 6.3%. Manufacturing expansion was 5.7% over the same period in 2007 and the 2008 six month expansion reached 6.3% over half 2007. Family consumption jumped 6.7% in the second quarter and accumulates 6.7% in the first half of 2008.

    Brazil's economy is forecasted to expand 4.8% this year compared to 5.4% in 2007 the fastest growth rate in three years.

    Finance Minister Guido Mantega said the figures released on Wednesday with strong capital investments are proof that Brazil is poised for sustained growth in the years to come.

    "This growth is quality growth because one of the items that raised the most was investments," Mantega said. "We should end the year with a very good performance, between 5 and 5.5%." But Mantega also expressed concern about robust domestic demand potentially driving up inflation, "I would like to see a slowdown in consumption."

    After operating in shaky territory for most of Wednesday, September 10, the Bovespa, São Paulo, Brazil's stock exchange, went up north in mid-afternoon rising 2.47% at closing time, with 49,633 points.

    The positive climate was helped by mining giant Vale's stocks, which went up about 6%, as well as by Brazil's steel industry companies.

    The volume traded at Bovespa surpassed 6,2 billion Brazilian reais (US$ 3.48 billion), which was the Brazilian market's average early this year.

    The dollar followed the international trend and for the eight consecutive trading session closed higher. With this the Brazilian real has lost all the gain made this year in relation to the American currency. The dollar, after Wednesday's 0.68% increase, went up to 1.785 reais.

    Mercopress/Bzz

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    Ads

    You May Also Like

    Fighting drugs in Rio

    It’s Time Brazil Learn Killing Drug Dealers Is Not the Answer

    The cost of treating  someone addicted to drugs in Brazil is  around  US$ 500,00 ...

    Apples

    Brazil Retaliation Costs Argentina’s Fruit Exporters US$ 300,000 a Day

    Exporters from Argentina claim they are losing huge sums of money because of Brazilian ...

    Brazil to let dollar rise in face of real

    Brazil Ready to Let Dollar Climb and Interests Fall

    Brazil has named a strong critic of the country's Central Bank strict (and controversial) ...

    US dollar

    Brazil Gets Lion Share of Foreign Investment in Latin America

    Foreign direct investment (FDI) in Latin America and the Caribbean was record last year, ...

    Rio mudslide

    While Death Toll Rises to Over 180, in Rio, Forecast is for Continued Rain

    Rio’s rains now have killed at least 180 people and over 14,000 were left ...

    Greenpeace Calls Brazil’s Biosecurity Bill Unconstitutional

    The non-governmental organization (NGO), Greenpeace, released a note summoning civil society to mobilize against ...

    Brazilian army in the Amazon

    Brazil Earmarks Half a Billion Dollars to Defend the Amazon

    According to reports by Brazilian daily O Estado de S. Paulo, Brazil plans to ...

    Juiz de Fora street, in Brazil

    World Crisis Lowers Brazil’s Per-Capita GDP to US$ 9, 263

    For the first time in 17 years the Brazilian economy contracted in 2009, falling ...

    How to Live and Thrive in Semi-Arid Brazil

    When it signed the UN Millennium Development Goals agreement, Brazil assumed responsibilities like ending ...

    Brazilian soccer fans

    All of Brazil Grinds to a Halt for World Cup, Even Supreme Court Closes Shop

    82% of Brazilians intend to watch the World Cup games at home, according to ...