World Bank Sees Brazil and LA Growing 4.5% in 2005

Brazilian shares ebbed, despite signs of easing inflationary fears and strengthening in the U.S. dollar. Brazilian issues pulled back on profit taking after closing last week at an all-time high. Brazil’s benchmark Bovespa Index slid 143.06 points, or 0.57%.

In economic headlines, a senior official at the World Bank said that he sees Latin America’s regional economy growing more than 5% this year, above the bank’s latest official estimate of a 4.7% expansion.


Guillermo Perry, chief economist for Latin America at the World Bank, stated that robust global demand for raw materials from Latin American and a recovery in regional business investment are spurring growth after three years of economic stagnation.


Perry also said Latin America’s regional economy should expand 4% to 4.5% in 2005.


Brazilian shares declined, after the local market reached an all-time closing high on Friday, as profit-taking outweighed projections for a decline in inflation.


Investors largely shrugged off a weekly central bank survey indicating that 100 economists and analysts polled expect Brazil’s IPCA consumer price index, which the bank watches when setting monetary policy, to rise 5.8% in 2005, down from a 5.9% increase forecast last week.


The lower inflation outlook could reduce concerns that the central bank will continue for many months, or even accelerate, rate hikes in its base interest rate. Still, Brazil’s macroeconomic outlook remains favorable.


Also, Brazil’s wholesale-heavy IGP-M inflation index gained 0.82% in November, following a 0.39% rise in October. The November results were in line with forecasts. Tomorrow, Brazil’s government will report third-quarter gross domestic product growth.


Turning to the corporate front, Telemar Norte Leste Participações rose. Friday evening, the firm announced plans to spin off and list separately its Contax call center.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

You May Also Like

Brazil’s US$ 1 Bi, 700-Mile Ethanol Pipeline in Service in 2009

Brazilian government controlled oil multinational Petrobras president José Sérgio Gabrielli announced that his company ...

Thanks to Russia and the US Brazilian Beef Exports Grow 20%

Revenues from Brazilian exports of bovine meat increased by 20% in the first eight ...

Brazil Consolidates World’s Beef Leadership and Plans 5% Growth in 2006

The president of the Brazilian Beef Industry and Exporters Association (Abiec), Marcus VinÀ­cius Pratini ...

With Less Taxes and Barriers Arab World Enticing to Brazilian Food

Antônio Costa, a manager at the Agribusiness department of the Federation of Industries of ...

Brazilian Party Accuses Police of Being Too Harsh in Fighting Corruption Case

Known as Operation Voucher, the August 9 Brazil’s Federal Police dragnet resulted in the ...

Brazilian President Offers Bush Brazil Know-How to Solve US Bank Crisis

Brazilian President, Luiz Inácio Lula da Silva, has called American president, George Bush, a ...

Brazil Confesses Impotence Via-í -Vis Haiti

On 1 February 2005, nearly one year after the de-facto coup against Haiti’s democratically ...

Brazil Gets Super Real and Overflows with Dollars: US$ 16 Billion in July Alone

It’s a record. Brazil registered its second-largest volume of net monthly foreign-exchange inflows on ...

Brazil Cuts in Half Number of Extremely Poor

Seven years before the deadline for the Millennium Development Goals (MDG), Brazil is showing ...

Cargill facility in Santarém, Pará, Brazil

Brazil Court Shuts Down US Soy Giant Cargill for Destroying Amazon

Brazil's Environmental Agency IBAMA has shut down a huge soy processing and  shipping facility ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`