Brazilian government cuts 2012 growth forecast from 4.5% to 3%
The Brazilian government said Friday it was cutting its economic growth forecast for this year from 4.5% to 3% due to the impact of the global slowdown. However the figure is still higher than the 2.5% predicted by the Central Bank.
“On the international stage, the most recent decisions made by European leaders dispelled the risk of a banking crisis in the short term, but the absence of growth and the reduction in trade still prevail in the advanced economies,” the planning ministry said in a report.
“Brazil is prepared and in a better position compared with the major countries... But even our country was affected by this deterioration of the international situation.”
In the first quarter of the year, the GDP of Latin America's largest power grew only 0.2% compared with the previous quarter and only 0.8% when compared with the same period of 2011. Last year Brazil’s economy, now the sixth largest in the world, grew only 2.7% after a strong 7.5% in 2010.
Over the past few months, the government has taken a series of steps to stimulate the economy and boost growth, including lowering taxes and bringing the base interest rate to a historic low of 8% to spur domestic consumption.
“The recovery of growth occurs gradually, given that some various stimulus measures adopted by the authorities have yet to fully affect economic activity,” the report said.
However, the government predicted that growth will accelerate in the second half of 2012, boosted by its stimulus packages.
The IMF earlier called on Brazil to increase productivity and rebalance domestic demand “from consumption to foster saving and provide space for investment.”
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Has Rousseff finally woken up to the fact he is useless?
And they have got to get to 3% yet: I am still betting on the Central Bank being nearer to the number than the 'government', 2.25% perhaps.
The IMF predicts 2.5% growth, Credit Suisse and other banks are projecting 1.5% only, which Mantega says it is “a joke”.
But the IMF is still being optimistic, because Brazil will have to grow at rates of 4.5% in the next quarters in order to achieve a mere 2.5%.
I think Credit Suisse´s projection is the most realistic, because it assumes that Brazil will manage to expand its economy at 2.8% in the final quarters, to make the 1.5% annual growth number.
You wrote are others' hypothesiss
Where are your own opinion ?
im sick , sick , sick up to here,??
My opinion is that Credit Suisse´s projections about more accurate.
My feeling is that if Brazil´s economy continues to show stagnant growth in spite of Dilma´s stimulus packages to revive the economy, at some point the country´s economist will have to call it a day and declare a recession. Nobody want´s to say word and we are all wishing that this is only a seasonal slump.
im sick , sick , sick up to here,??
Camoron looks sicker, but ach, let's not talk about that. He has more austerity measures for in place.
“My opinion is that Credit Suisse´s projections about more accurate.”
Oh sure. How's the drug war going there?
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