All Bullish on Brazil: Central Banks Sees 5.8% Growth, Finance Minister, 5.2%

    Handful of dollar

    Handful of dollar In 2010, after stagnation last year, Brazil’s Gross Domestic Product (GDP) should grow 5.2%. The figure was presented by Finance minister Guido Mantega at a meeting at Granja do Torto, the second presidential home in Brazilian capital Brasília, last week.

    The Finance Ministry’s estimate is lower than that of the Central Bank. In its inflation report, disclosed in late December, the institution forecasted growth of 5.8% in the economy this year.

    The economic growth, according to the Finance Ministry, should be sustained mainly by domestic demand, with forecasted growth of 7.3%. This expansion, however, should be counterbalanced by lower foreign trade.

    According to the minister, imports, fund transfers abroad and expenses of Brazilians in other countries should have a 2.1% negative impact in growth of the GDP, resulting in a rate of 5.2%.

    Last week, the Central Bank disclosed that the balance of Brazilian foreign accounts in December was US$ 5.94 billion negative, the worst result for the month since 1947. According to Central Bank forecasts, Brazil should have a foreign currency deficit of 2.095% of GDP in 2010.

    According to the minister, the investment should rise 16.1% in the period, after having dropped around 10% in 2009. Family consumption should grow 6.1% and industrial production, which dropped 5.3% last year, should grow 7.1%.

    To the Finance Ministry, the elevation of investment next year shows that the economic growth is sustainable in the medium and long-term. “The growth is sustainable as it is based on sure footing and maintenance of inflation under control, fiscal responsibility and low foreign vulnerability,” according to the ministry’s document.

    The 2009 GDP result will only be known in March. The Finance Ministry’s forecast is for growth of 0.1%. The Central Bank, in turn, has forecasted 0.2% expansion.

    ABr

    Tags:

    • Show Comments (1)

    • Financial culture

      Types of Internet Scams – Don’t be a victim of such cons
      Sir Richard Branson takes another commercial leap and attempts to become one of the key banking service provider in UK by giving a nod to buy the Church House Trust, a petite local private lender in UK. The acceptance of this deal by Financial Services Authority will endow Virgin Money with a banking license, much needed to offer full range of financial products to their customers.

    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

    American Airlines

    Brazil Lets Airlines Offer Discounts on International Flights

    The Brazilian government is starting to loosen its grip on international airline tickets including ...

    Brazilian Exports to Arabs Grow Surprising 24.5%

    Brazilian exports to the Arab countries generated a surprise for the second consecutive month. ...

    The Auditorium Wars

    The success of TV hosts has created a new class of nouveaux riches in ...

    Agriculture Exports Grow 13% in Brazil and Reaches Record US$ 49 Billion

    Brazilian agribusiness exports hit a new record high, amounting to US$ 49.422 billion in ...

    Brazilian protesters want jail for Lula and Cardoso

    Lula Didn’t Get a Blank Check from the Brazilian People

    The October, 2006, reelection of Luiz Inácio Lula da Silva as president of Brazil ...

    Flying Words

    Brazilians, in their eagerness to learn English, engender terrible Anglicisms. A very sad one ...

    Brazil Trade with Arab Countries Expected to Grow 20% in 2006

    Trade between Brazil and the 22 countries that belong to the Arab League grew ...

    Kyly, Brazil’s Cool Kid Clothes Maker Looking for Hot Countries

    The company Malhas Kyly, from the southern Brazilian state of Santa Catarina, specialized in ...

    Beware Lula, Mr Bush

    "We request that the State Department assess the threat that Mr. Lula’s policy poses ...