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

    A sunset in the Amazon

    Until World Gets Internationalized the Amazon Belongs to Brazilians Alone

    In October 2000, I published an article entitled “A Internacionalização da Amazônia” (The Internationalization ...

    Magdi Aloufa

    Brazil Gets Country’s First Endangered Species Laboratory

    Brazil's first Laboratory for Conservation of Endangered Species will be housed in the Federal ...

    Antonio Palocci

    Brazil Congress to Inquire How President’s Chief of Staff Multiplied Fortune by 20

    Not even five months, Brazil’s young government faces its first scandal. It involves presidential ...

    Zero Hunger to the Rescue of Brazilian Indians

    Two and a half thousand victims of malnutrition from indigenous communities in the state ...

    The World of Education Is Gathering in Rio, Brazil

    The World Education Forum (WEF) begins Wednesday, March 22, in the city of Novo ...

    Brazil’s Emergency Political Reform Will Ban Pop Stars from Political Rallies

    The president of the Brazilian Congress, senator Renan Calheiros (PMDB party from Alagoas state), ...

    Oil and US Inflation Boost Brazilian Market

    Brazilian and Latin American markets ended higher, yesterday, marking a sharp turnaround alongside U.S. ...

    Brazilian currency, the real

    Brazil’s Industry and Labor Unions Decry 11.75% Key Interest Rate

    In Brazil, the Central Bank’s Monetary Policy Committee (Copom), for the second time this ...

    Talent Is Good, But You Need a Team to Win the Cup, Says Brazil’s Coach

    What needs to win World Cup title? Brazil coach Carlos Alberto Parreira is sure, ...

    Mugged in Brazil

    Bit by bit I was losing the struggle. He was taller and bigger than ...