MercoPress. South Atlantic News Agency

Brazilian economy expanded 1.35% in 2012 and 4% is projected for this year

The official and final figure will be released by the stats office on March first

Brazil's economy grew 1.35% in 2012, above the market forecast of 1 percent, according to the Central Bank estimate. The official and final figure will be released by the Brazilian Institute of Geography and Statistics (IBGE) on March 1.

While the central bank's growth estimate is higher than the market prediction, it still falls short of the government's 4% growth projection announced at the beginning of last year.

The country's economic activity in December rose 0.26% compared with the previous month, lower than November's 0.57% over October, indicating an economic slowdown towards the end of last year, according to the bank.

In the last quarter of 2012 the economy expanded 0.62% which was lower than the encouraging 1.12% of the third quarter.

In 2012, the Brazilian government announced a whole barrage of measures to stimulate growth, including cutting the central bank's overnight rate to a record-low 7.25%, reducing taxes for industries, increasing credits and lowering prices and a drastic reduction in electricity rates both for industry and homes.

For 2013, the government forecasts a 4% growth, while the financial market predicts a lower 3.08%.

In 2010 (electoral year) the Brazilian economy expanded at Chinese pace, 7.5% and in 2011 it was down to 2.7%.