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 *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Dilma Rousseff in Cuba

    Brazil President in Cuba: He Who Has No Human Rights Problem, Cast the First Stone

    During an interview today in Havana, Brazilian president Dilma Rousseff told reporters that the ...

    Family marches at Brazil's Gay parade

    Brazil’s First National Gays and Transsexuals Conference Is Sponsored by Government

    Brazil's First National Conference of Gays, Lesbians, Bisexuals, Transvestites and Transsexuals received its official ...

    Tupinikim chief Jaguaretê

    Tired of Waiting for Government Action Brazilian Indians Take Over Land

    Tupinikim and Guarani Brazilian Indians who live in the southeastern state of Espírito Santo ...

    Bay Wash

    Rio was one of the first cities in the world to have a water ...

    Soccer: Brazil to Host 2014 World Cup

    The president of the Chilean Football Association Reinaldo Sánchez almost but confirmed Brazil as ...

    For Brazil, Amazon is for All to Use and to Help

    Brazil’s Minister of Foreign Relations, Celso Amorim, emphasized the importance of cooperation between all ...

    Brazil Lends a Technical Hand to Guinea-Bissau’s Presidential Elections

    A technical team from the Brazilian Federal Electoral Court (TSE, Tribunal Superior Eleitoral) collaborated ...

    Brazil Sends Blair a Note: Key to Security Is Fighting Poverty

    Brazil’s President Luiz Inácio Lula da Silva sent a message Tuesday, November 15, to ...

    Petrobras's Gurupá oil ship

    Brazil Finds Oil in New Exploratory Frontier Off Northeast Coast

    Brazilian state-controlled oil multinational Petrobras and Norwegian company StatoilHydro announced this Tuesday, November 25, ...

    Rio Olympics, The Dream Has Started

    Brazil Evicting Without Proper Compensation While Getting Ready for Olympics

    Brazil is expected to displace and evict scores of people all around the country ...