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Montevideo, September 23rd 2018 - 00:51 UTC

Agriculture should help boost the Brazilian economy to 3.1% growth in 2013

Tuesday, April 2nd 2013 - 05:42 UTC
Full article 3 comments
The Brazilian central bank anticipates agriculture will expand 6% after a retraction last year The Brazilian central bank anticipates agriculture will expand 6% after a retraction last year

The Brazilian economy is expected to grow 3.1% this year while inflation will reach 5.7% according to the latest estimates from the Central bank released in its “Quarterly inflation report”. In the previous report at the end of last year inflation was estimated at 4.8% but there was no figure for growth.

The latest report indicates the Central bank expects the Brazilian economy to begin picking up steam in 2013 after suffering a considerable slowdown in the last two years allegedly as a consequence of the international crisis. In 2010 the economy rolled ahead at 7.5% but GDP in 2011 only expanded 2.7% and 0.9% in 2012.

“This growth projection (3.1%) for this year contemplates a more intense rhythm of activity for the Brazilian economy with the recovery of investments and with a growth pattern more in line with the country’s potential” points out the report.

The Central bank estimate for this year is close to the 3% average a majority of economists and markets analysts forecasted last week, but below the 4% estimate from the Ministry of Finance.

According to the Central bank agriculture will play a leading role with production increasing 6% after a 2.3% retraction in 2012. Manufacturing will expand 2.3% after yielding 0.8% last year and services should expand 3.1% following a slight expansion of 0.7% in 2012.

Domestic consumption which has become the engine of the Brazilian economy is poised to climb from 3.1% in 2012 to 3.5% this year, based “on the moderate expansion of credit and the tight labour market”.

Finally regarding inflation the Central bank estimates 5.7% this year decreasing to 5.3% in 2014, which means that in both cases it will be below the 5.84% of 2012 and 6.5% of 2011. Market analysts also agree with the bank since they estimate prices will climb 5.71% this year and 5.6% in 2014.

The resurgence of inflation in recent months has become a major challenge for the Brazilian central bank which ended its policy of interest-rate gradual reductions geared to promote economic growth and which has remained unchanged since last October at 7.25%.
 

Categories: Agriculture, Economy, Brazil.

Top Comments

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  • mastershakejb

    yea, and elephants might learn how to fly this year. Brazil is second most mismanaged country in the world, after Argentina

    Apr 02nd, 2013 - 06:47 pm 0
  • Hepatia

    http://en.mercopress.com/2013/04/02/agriculture-should-help-boost-the-brazilian-economy-to-3.1-growth-in-2013#comment234432: Yet, even with the management handicap, Brazil's growth still outstrips that of the United States.

    Apr 03rd, 2013 - 12:01 pm 0
  • Fido Dido

    “yea, and elephants might learn how to fly this year. Brazil is second most mismanaged country in the world, after Argentina”

    They are doing much better and both have long term opportunties compare where we both (the US) live.
    @2, nevermind, #1 another fluoride/aspertame diet coke kool aid drinke. mastershakeejb is like john kerry, a flip flopper. Before he used to live in Uruguay (that's what he claimed) and bashed the brits with “mad mohammeds and Malvinas is Argentina rhetoric”. Now it's back in the US, it switched to the otherside, believes it's an expert on South American and believes his own kool-aid stories that the US is some mega power where everything is fine.

    Apr 03rd, 2013 - 01:37 pm 0
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