Brazil will invest heavily in infrastructure this year which will help create jobs and boost the economy said President Luiz Inacio Lula da Silva during his weekly broadcast.
However some analysts believe original plans will have to be halved following a vote in the Senate that will cut tax revenues by the equivalent of 21 billion US dollars. But Lula da Silva insisted he was optimistic and said that in the coming weeks several of those major projects will be taking off. "Many investments are about to begin,ÃÂ¢€Ã‚Â¦in February, March, April almost all projects will begin generating jobs and giving more strength to our economy", he emphasized. The Lula da Silva administration recently announced plans for major infrastructure investments and red tape clearance that should speed the program. Government economists are talking of sufficient infrastructure investments to generate as much as two million new jobs. Capital investment is forecasted to expand 14% in 2008, the largest percentage in a decade according to Brazil's National Confederation of Industry. Businessmen and investors have repeatedly complained that Brazilian roads full of craters, port facilities overloaded and insufficient railways are eroding Brazil's international competition capacities. "We'll have a 2008 far better than 2007, with more jobs and more growth", said Lula da Silva in his broadcast. Independent economists believe the Brazilian economy expanded 5.1% in 2007 but will slow down to 4.5% this year.