Brazilian Industry Tired of Growing Slower than Rest of the World

    Brazilian manufacturers expressed Tuesday their "frustration" given the absence of an official reforms agenda to help thrust economic growth next year, which is forecasted to be in the range of 3.5%.

    "If we don’t address the reforms agenda, we’ll have to share year after year the same frustration," said Armando Monteiro president of the powerful Brazilian Confederation of Industries (CNI) during an evaluation of the outgoing year and prospects for 2007.

    According to CNI economics department, the Brazilian economy is set to expand 2.7% this year and 3.5% in 2007, when President Lula da Silva’s second mandate begins.

    Brazil’s growth for several years has been below that of other competing major emerging countries and of most of Latinamerica.

    "For the last eleven years we’ve been expanding far less than the rest of the world," said Monteiro recalling that the International Monetary Fund has forecasted 5.2% growth for the region this year," said Monteiro.

    The CNI reports targets as the mayor obstacle for Brazil’s development as "the strong and continuous expansion of current government expenditure," estimated in 13%, far above Brazil’s GDP growth which is damaging "for savings and means higher taxes."

    "Government savings are essential for achieving money value public works investment, particularly in infrastructure," insisted the report.

    Monteiro demanded "strong action" to help reduce the social security deficit, although President Lula anticipated his next government will "rationalize performance."

    "Conditions to grow above the 3% threshold are currently absent," said Monteiro in spite of praising some positive aspects of the government’s economic policies such as cutting basic interest rate from 18% at the beginning of 2006 to the current 13.25%.

    This week, President Lula da Silva’s administration is scheduled to announce a package of measures to promote economic activity and exports.

    Last October, Lula was re-elected for another four-year period, promising among other things annual GDP growth of 5%.

    Mercopress – www.mercopress.com

    Tags:

    • Show Comments (1)

    • ch.c.

      But as long as…..
      Impressive…..failures….as I repeatedly wrote, despite Lula caressing his navel for his achievements which in fact are only failures.

      Stats is better than words, promises and lies ! That is the only things that Lula ever delivered !!!!!!

      And Brazilians swallow what Lula says ! You have even re-elected him, thus dont be surprised of what is going to happen during his second mandate.

      Nothing of what he promised in his first term was delivered !
      Why expect more…in his second term.

      At the end, the only idiots are those who still trust his cheating practices and all his lies !

      You got and will get what you voted for : more failures, more promises and more lies !

    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’s Lula Gets Quite a Jump on the Polls

    The latest CNI/Ibope opinion poll which was released, Wednesday, March 15, shows that there ...

    Brazil Decides Drinking More Coffee Is the Answer to the Coffee Crisis

    One of the decisions of the 2nd World Coffee Conference, which took place this ...

    Brazil Wood Sector Sells US$ 8 Million to Arabs in First Quarter

    The Brazilian wood industry had revenues of US$ 8.1 million with exports to the ...

    Presidential candidates Dilma Rousseff, Marina Silva and Aécio Neves

    Less than a Month Before Brazil Elections There’s a Tie Between Two Leading Candidates

    A poll whose results were released on Wednesday, September 10, reports Brazilian President Dilma ...

    Brazil’s Central Bank Hikes Interest Rates to 18.25%

    In spite of the expected interest rate hike by the Brazil’s central bank Brazilian ...

    A Double Look

    One Final Clarification By JB Kennedy From 1967 to 1973 the Jornal do Brasil, ...

    Brazil Sets New Import Record

    Brazil imported the equivalent to US$ 6.082 billion in November. The value is a ...

    Recyclable Cheapens Popular Housing in Brazil

    The results of the InovaRural rural housing project, which is backed by the Study ...