Brazilian Industry Raises Brazil’s 2006 GDP Growth Estimate to 3.7%

    The Brazilian National Confederation of Industry (CNI) raised its estimate for this year’s growth in Brazil’s Gross Domestic Product (GDP), the sum of wealth produced in the country, to 3.7%

    According to the analysis presented in the Conjunctural Bulletin published Thursday, April 27, the economy will be driven primarily by industry, which is expected to grow 5%.

    The forecasts made by the CNI at the end of last year projected increases of 3.3% and 4.2%, respectively, for the GDP and industry.

    The bulletin also contends that growth in 2006 will be based on the domestic market, unlike what occurred in previous years, when exports determined the outcome. It is estimated that consumption by families will increase 4.5%, in consequence of lower interest rates and higher incomes.

    The reduction in March of the Long-Term Interest Rate (TJLP) to 8.15% per annum, together with the prospects of more dynamic industrial activity, should stimulate companies to make investments, the document goes on to say.

    An 8.2% increase in investments is projected. At the end of last year, the CNI estimated investment growth to be 6.5% in 2006.

    The CNI expects exports and imports this year to total US$ 130 billion and US$ 89 billion, respectively, resulting in a trade surplus of US$ 41 billion. At the end of last year, the confederation forecast a US$ 43.5 billion trade surplus.

    What is happening is that imports are growing at a faster pace than exports. "In the first quarter of 2006, imports amounted to US$ 20 billion, 24% more than in the first quarter of 2005," the document affirms. During the same period, exports expanded 20.2%, to US$ 29.4 billion.

    Agência Brasil

    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    Your email address will not be published.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

    Chico Mendes

    Named after Marechal Rondon, a soldier who tamed the Amazon, Rondônia was created in ...

    Brazil's Supreme Court in capital Brasília

    Welcome to Brazil, a Paradise of Impunity for All Kinds of Criminals

    Brazil has faced an explosion of violence and criminality over the last two decades, ...

    Brazil's Sierra Aeronáutica

    Brazil Joins US Company to Service Brazilian Chopper Clients

    At the LABACE aviation tradeshow in São Paulo, a city in southeastern Brazil, Brazilian ...

    Brazil's Angra nuclear plant

    Brazil Pondering the Nuclear Option

    Brazil will increase the use of nuclear energy if it cannot build enough hydroelectric ...

    Oil exploration in Bolivia Amazon

    Brazil, Colombia and Peru Agree to Look for Oil in Peru’s Amazon

    Government oil corporations from Brazil, Colombia and Peru signed Thursday, November 22, an agreement in ...

    Brazil food

    Brazil Industry Grows 3.3% Led by Autos, Metallurgy and Food

    The sectors of automotive vehicles, basic metallurgy, and food and beverages have led Brazilian ...

    If Only Lula Could Show a Little Leadership to Move Brazil Ahead

    The penultimate Brazilian President to resign was Jânio Quadros in 1962. Eventually, leftist leaning ...

    Pope Benedict XVI is greeted by Brazilian faithful in Guaratinguetá

    Canonizing a Charlatan Was Just the Start of the Pope’s Brazilian Mission

    A reader tells me that he doesn’t understand "this persecution of yours of Catholic ...

    An Yanomami Indian from Brazil

    Indians Advocate Plurinational States Involving Brazil and Neighbors

    Indigenous peoples from Brazil and neighboring countries would like to turn Latin American nations into ...

    Helibrás hangar in Minas Gerais, Brazil

    Brazil Set to Make Large Helicopters. Government Will Be Client

    A Brazilian-French cooperation agreement in the military aerospace sector has just been signed between ...