Brazil’s Central Bank Chief Betting 2006 Will Be Very Good

    The president of Brazil’s Central Bank (BC), Henrique Meirelles, calling 2005 a year of adjustments, admitted that growth last year was below expectations. But, speaking to the American Chamber of Commerce in Rio de Janeiro, he said the prospects for 2006 were very good.

    Even with sluggish performance in 2005, it was above 2004 and better than most emerging countries, Meirelles pointed out.

    He said the Central Bank was doing its part by keeping the country’s economy sound with low inflation that was being kept within strict limits. Meirelles emphasized that countries do not grow with high inflation.

    He called the inflation targets "consistent," and added that they were adequate for the country’s growth targets. He pointed out that over the long term, with low inflation, the tendency is for economic expansion and falling interest rates.

    According to Meirelles, the external situation at the moment is favorable for Brazil. Meirelles said the reduction of the country’s average net foreign debt from 35.9% of GDP to 14.8% was a strong point.

    He also pointed out that the country’s reserves were once again close to 50% of total debt, rising US$ 38 billion in a little over two years. "Reserves reached US$ 53.8 billion at the end of 2005 and continue to rise," he said.

    As for foreign debt, it has fallen US$ 80.3 billion over the last five years as the country eliminated its current account deficit, and entered a period of growth accompanied by current account surpluses which is a very good sign, he said.

    Meirelles concluded by saying that the result of sound economic policy was higher resistance to shock waves from abroad and the creation of an economy that was much less vulnerable.

    Surplus

    On the first week of February, with three working days, Brazil exported US$ 1.293 billion and imported US$ 1.148 billion, with a positive surplus of US$ 145 million.

    Throughout the year, the trade balance accumulates exports of US$ 10.564 billion, and imports worth US$ 7.575 billion, with a surplus for the period of US$ 2.989 billion.

    The figures were released by the Ministry of Development, Industry and Foreign Trade.

    Domestic Savings

    A survey by Brazil’s Federal Mortgage and Savings Bank (Caixa Econômica Federal) shows that last year the balance of its passbook savings accounts rose to over US$ 23 billion, an increase of 8.6% , compared to 2004.

    The number of accounts was also up. In 2005, 3.9 million savings accounts were opened, bringing the total to 29 million. For the sake of comparison, in 2000, the Caixa had 13.6 million savings accounts.

    Caixa spokesmen say the institution’s target for 2006 is to have 32 million savings accounts with US$ 25 billion.

    Agência Brasil

    Tags:

    • Show Comments (1)

    • Guest

      Meireles is just lying again and again..
      …just as Lula and Palocci !

      In 2005 Brazil grew far less than all the 24 countries called developing countries.
      On the last rank you were.
      Same for 2004, despite your 4.9 % growth.
      And same again for 2003 with your 0.5 % growth.

      Just look now what will be your average growth rate during Lula 4 years mandate, including positive expectation of 4 % for this year :
      BELOW 3 % average growth.

      At the dead end of your classroom. Simple !

      Giving too rosy projections year after year will not change the reality…..neither at each year’s end nor at the end of Lula’s mandate !

      But hiding the truth to the Brazilian citizens has been the only consistancy of this government.

      Numbers are numbers ! Facts are facts ! Rankings are rankings !

    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

    Bovespa, São Paulo, Brazil, stock market

    Brazil’s Stock Market – the Path to Riches or Rags?

    I have just read an interesting book called "Emerging Markets" published by the Economist. ...

    Venezuela's PDVSA

    Brazil Kisses Goodbye to Offshore Deal with Venezuela’s PDVSA

    Brazilian state-controlled oil multinational Petrobras has abandoned plans to help develop Venezuela's Mariscal Sucre ...

    Brazil: World Forum Discusses Water Use and Misuse

    On Friday, November 5, the Rio Grande [do Sul] Press Association (ARI) launched the ...

    Brazil Ready to Pardon Debts As Long As Someone Else Pays

    Five Latin American countries seek to have their debts with the Interamerican Development Bank ...

    Brazil and Guatemala Cement Military Ties

    Brazil and Guatemala signed an agreement to work together in the area of defense. ...

    Fire & Fun

    The French brought to Brazil the quadrilha, which is a theatrical dance that tells ...

    Brazil and US in Haiti Discussing That Country’s Elections

    Representatives of Brazil, Argentina, the United States, Canada, Chile, and France are arriving in ...

    Brazil’s Lula Calls for Urgent Meeting to Discuss Bolivia’s Oil Nationalization

    Brazilian President Luiz Inácio Lula da Silva has scheduled a meeting this Tuesday, May ...

    China and Middle East Top Brazilian Poultry Buyers

    Cooperativa Mista Rondon (Copagril), a cooperative from the city of Marechal Cândido Rondon, in ...