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Growth predicted for Brazil
07/02/2012
The Brazilian economy is predicted to grow this year, albeit at a steady rate in comparison to earlier results.
Officials from the National Confederation of Industries reported earlier this week that the economy is set to grow by about three per cent over the course of the year following a decline in the rate of expansion in the second half of 2011.
Reports from the Wall Street Journal revealed that the confederation cited economic difficulties abroad and ongoing local structural challenges as two of the main reasons for the slower pace of expansion.
However, while three per cent is down from recent highs of over seven per cent, for the current economic climate it is still a positive result, especially when many of the world's major powers are barely recording any expansion at all.
Chief economist at the organisation, Flavio Castelo Branco, commented on the latest data: “Industry is showing more or less the same level of production as three years ago, before the emergence of the global financial crisis.”
He added, however, that the recent slowdown in demand could help to lower heavy import rates, while tax incentives, credit and interest rate easing measures from the government could work to improve local sales.
Officials from the National Confederation of Industries reported earlier this week that the economy is set to grow by about three per cent over the course of the year following a decline in the rate of expansion in the second half of 2011.
Reports from the Wall Street Journal revealed that the confederation cited economic difficulties abroad and ongoing local structural challenges as two of the main reasons for the slower pace of expansion.
However, while three per cent is down from recent highs of over seven per cent, for the current economic climate it is still a positive result, especially when many of the world's major powers are barely recording any expansion at all.
Chief economist at the organisation, Flavio Castelo Branco, commented on the latest data: “Industry is showing more or less the same level of production as three years ago, before the emergence of the global financial crisis.”
He added, however, that the recent slowdown in demand could help to lower heavy import rates, while tax incentives, credit and interest rate easing measures from the government could work to improve local sales.
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