MercoPress. South Atlantic News Agency

Brazilian government admits lower growth for 2009

Brazilian Finance Minister Guido Mantega admitted for the first time that Brazil's economic growth will likely fall in the 0 to 2% range in 2009, Brazilian media reported Friday.

The Brazilian government has not admitted the possibility that GDP might contract this year amid the global financial and economic crisis. Previously it had estimated growth at 2%, while the Brazilian Central Bank put it at 1.2%.

”The first quarter (of 2009) was very bad. The second will bring a restart (of growth) with GDP accelerating. Not much, but it's going to go up. The third will be even stronger and the fourth we will close with a very good rise. I think we will close the year with close to 0-2 per cent growth“ Mantega said.

He noted that Brazil ”is already out of the bottom of the pool,“ although this year's high volatility makes it difficult to make estimates.

Planning Minister Paulo Bernardo admitted that ”perhaps“ the government should revise its growth goals. ”We should not forget that most countries are going to close (the year) with four points of negative growth,” Bernardo said.