Brazil’s Latest Growth Projection for 2006: No More than 3.3%

     Despite optimistic projections by President Luiz Inácio Lula da Silva and Finance Minister Guido Mantega who are betting that Brazil will grow 4% this year, Ipea (Institute of Applied Economic Research) a branch of Brazil’s Planning Ministry, says that the Brazilian GDP will not grow more than 3.3% this year.

    In fact, the Ipea has revised downwards most of its growth targets for 2006. In its previous forecast the Institute was anticipating a 3.8% GDP increase this year.

    The Ipea’s quarterly bulletin published today, September 6, also downplays the growth of exports (from 5.3% to 4.5%), of imports (from 14.7% to 14%), of families expenditures (from 4.8% to 4.3%) and of investments (from 7.8% to 6%).

    The forecast for services growth fell from 2.7% to 2.4% and the one for agriculture went down from 2.5% to 2.3%. As for industrial production the reduction was even more pronounced: from 5.3% to 4.2%.

    The Ipea also revised downwards its inflation projection from 4.4% to 3.2%, way below the 4.5% target established by the government. According to the Institute, the Brazilian inflation  should top at 4.5% in 2007.

    On the positive side, the Ipea increased its trade balance estimate from US$ 40.4 billion to US$ 43.6 billion for this year. This number should fall to US$ 40.1 billion in 2007, however.

    The current account balance for 2006 also got a better outlook: instead of the previously projected US$ 8.4 billion, the Ipea is now expecting US$ 10.6 billion by year’s end.

    Tags:

    • Show Comments (1)

    • ch.c.

      It looks to be even much bleaker than that !
      FIESP and CIESP reduced your 2006 GDP growth estimates at………..2 % ! Yesssssssss………

      Sorry for you and sorry for Lula and his gang of liars. Rosy estimates were already provided for 2005. Results……results were
      far below the lowest estimates. Therefore nothing has changed. Your government is just unable to manage properly your GDP growth rate. They are quite more effective in corruptions. In corruptions yolur growth rate is probably the world highest whereas you get almost the world lowest growth rate in your GDP growth rate.

      And to penalize and punish those responsible…….you re-elect them !

      Truly funny !

    Your email address will not be published.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

    White-House Inspired

    If it weren’t for President Clinton, the song "Boquete" would probably still be in ...

    Jobs Grow 3.65% in First Half, in Sí£o Paulo, Brazil

    The level of employment in the industrial sector in the state of São Paulo ...

    Big Jump in Brazil’s Cars Export and Production

    Brazil’s vehicle exports increased by 49.5% in the first nine months of the year. ...

    Five Countries Discuss in Brazil Future of the Rio de la Plata Basin

    The Ministers of Environment of Brazil, Marina Silva, and Paraguay, Alfredo Molinas, will jointly ...

    Brazilian wine

    Brazilian Wine Makers Showcase their Spirit in San Francisco and NY

    Leading wineries of Brazil will host their first West Coast tasting on September 12, ...

    Protests Unite Brazilian Indians and Get Them Official Promises

    Brazil’s National Free Land Indigenous Demonstration ended on Friday, April 29, in BrasÀ­lia. The ...

    Real Jazz, Really Brazilian

    American audiences discovered Filó Machado’s jazzy samba and vocal pyrotechnics a few years ago, ...

    Walk-In Motel

    "Men still have a need for a parallel life and for expressing their impulses ...

    Brazil’s Unemployment Reaches Record Low in 2 years

    Brazilian stocks are moving higher, although trading is tentative considering today’s shortened market session ...

    A crowd in São Paulo, Brazil

    Brazil Grows Close to 10% in 10 Years to 186 Million

    Besides being the largest country in territory in Latin America Brazil also has the ...