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

    Brazil to Get 4th Spot as IT Outsource for US

    Three-quarters of U.S. companies outsourced some or all of their information technology activities in ...

    Fast Times in Lula’s Brazil

    The sudden resurgence of the real has scared some people, including President Lula. In ...

    Brazil’s Health Council Wants Patents for Three AIDS Drugs Broken

    Brazil’s National Health Council sent Thursday, August 11, a document to the Brazilian Minister ...

    Brazilian Press: Bring Back the Journalists!

    The media, taken as industry or institution, finds itself paralyzed. Its reactions are counterproductive ...

    Brazil’s General Death, Just Another Casualty of Haiti’s Chaos

    The first round of presidential and parliament elections in Haiti has been rescheduled for ...

    Ahmadinejad in Brazil

    Ahmadinejad’s Provocation in Brazil: US and Israel Have no Courage to Attack Iran

    Is Mahmoud Ahmadinejad, the president of Iran, worried about a possible military attack by ...

    Arlindo Chinaglia

    Rebellion in Allied Base Forces Brazilian President to Change Congress Leadership

    Brazilian president Dilma Rousseff named veteran congressman Arlindo Chinaglia from the Workers Party (PT) ...

    Paralamas’s forbidden lyrics

    The Brazilian courts have forbidden the publication and public utterance of the lyrics below. ...

    Avenida 23 de Maio in São Paulo, Brazil

    Brazil’s Car Industry Sells 41% More in January and Hits Record

    Brazilian carmakers are starting the year promisingly both in deals closed on the domestic ...