• Categories
  • Archives

Brazil One of the First to Recover from Global Crisis, Says Minister

Brazil's Guido MantegaAccording to Brazilian Finance minister, Guido Mantega. Brazil is not
facing fiscal troubles and anti-cyclic policies are showing
satisfactory results. His statement was supported by the latest release
on retail sales, for May, which was higher than expected.

Mantega said any worry about the country's fiscal situation is unnecessary, stressing that the fiscal situation had improved in the past few years with the country managing significant primary surpluses and which also enabled to save 0.5% of GDP for the Sovereign Fund.

Primary surplus, which excludes interest payments on Brazil's massive public debt, was reduced earlier this year to 2.5% of GDP in 2009 from 3.8% as the government embarked on a public works projects to bolster growth.

However Mantega pointed out that in order to achieve the primary surpluses, "it was necessary for us to cut spending" and if it is necessary "we will make further spending cuts by the end of the year to guarantee this goal, to make sure we achieve this fiscal result."

Mantega insisted Brazil would be one of the first countries to recover from the international financial crisis and that the economy will grow more than the global average in the next few years.

Mantega's statement came in response to the latest report released by the Organization for Economic Cooperation and Development (OECD), which said the increase in public expenditure must be contained in order to increase investment.

OECD also cautioned against new fiscal stimulus measures, which should only be adopted "if the economic scenario takes a turn for the worse."

Additionally, OECD recommended another cut in the Selic basic interest rate which is currently at 9.25%, in order to boost economic recovery.

Meanwhile Brazil's statistics office, IBGE, reported that retail sales volumes rose more briskly than expected in May, a sign that domestic demand could be recovering. Sales volumes rose 0.8% month-on-month in May, after falling 0.1% in April. The April sales figure was revised upward from a previously reported minus 0.2%.

Retail sales grew 4% compared to May 2008. Nominal sales, as measured by total sales receipts and unadjusted for inflation, rose 0.8% month-on-month in May. Nominal sales rose 8.9% from May 2008.

Anba

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Your email address will not be published.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

Lula’s Administration Bends to Pressure and Makes Changes in Human Rights Plan

Brazilian minister Paulo Vannuchi, the head of the Human Rights Secretariat, has confirmed that ...

Arlindo Chinaglia, the new Speaker of the House in Brazil

Brazil’s Lula Faces Arm-Wrestling Contest with New Congress

The bewildering way in which Brazilian politics work was evident during the election for ...

Chile Accuses Brazil of Slamming Doors on Tourism for Its Swine Flu Policy

Brazilian government advice against traveling to A/H1N1 virus flu-stricken Argentina and Chile by people ...

In Brazil 70% of Women Abuse Is Shelved. At Women’s Request.

A survey in Brazil coordinated by professor Heleieth Saffiotti has found that 70% of cases ...

The Red Bishop Goes to Heaven

Hélder Câmara’s Thoughts By Francesco Neves "Are you going to heaven?", a reporter asked ...

Brazil’s Lula to Meet Chavez and Kirchner

Brazilian President Luiz Inácio Lula da Silva participates today in the inauguration of the ...

Chevron’s Oil Spill in Brazil Leads Experts to Ask for Urgent New Survey in the Area

Brazilian specialists have become seriously worried about more oil spills off the coast of ...

Alston's unit in São Paulo, Brazil

Iron Industry Draws French Alston to Eco Projects in Brazil

French company Alstom specialized in power generation and railway infrasctucture is going to install ...

The Economy of Chaos

For long considered a patrimony of Brazilian music, Francisco Buarque de Hollanda, better known ...

Brazil Pleas for Haiti at UN

This week the Brazilian government is making another move to gain new support for ...