Central Bank of Brazil Sees Bigger Offer of Credit in the Country

Brazzil Magazine covers

Brazilian currency, the real Brazil's Central Bank registered growth in credit operations in all Brazilian regions in the period going from December 2008 to February this year, when compared to the previous quarter. However, the rhythm of growth was smaller. The figures were disclosed last week in the institution's Regional Bulletin.

According to the study, in the Southeast, for example, the credit operations in February posted growth of 1.7% over the quarter that ended in November last year, totaling 621 billion reais (US$ 300 million). In the 12 months ending in February, the growth was 30.4%.

In the South, the increase was 1.4% when compared to November 2008 and 29.6% over February last year. In the Northeastern region, the increases were 2.5% and 33.7%, respectively. The North posted growth of 1.1% and 29.3% and the Midwest, 3% and 26.8%.

According to the bulletin, the most critical month for the Brazilian economy was December 2008, at the height of the current international crisis, whereas the first months of this year presented positive performance for most of the Brazilian regions, both in industry and in trade.

The Economic Policy director at the Central Bank, Mário Mesquita, said that the indices point to a gradual recovery of the Brazilian economy. Despite that, he does not believe that the country may, in coming quarters, maintain the same levels of growth as in the period before the financial crisis.

"It is worth recalling that the pre-crisis period for the Brazilian economy was one of very intense growth in demand. The contribution of the domestic demand for growth was very strong. We do not necessarily have to see that trajectory as a sustainable one. There were several elements at the time causing concern. I am not sure if it is very probable for us to return to that rhythm, nor am I sure if it would be totally adequate for the current conjecture of the world economy," he said.

ABr

Tags:

You May Also Like

Brazzil Magazine covers

Over 70% of Brazilian Exporters Affected by World Crisis

Seventy three percent of Brazilian exporters were affected by the international financial crisis. The ...

Brazzil Magazine covers

Brazil’s High Tech Exports Grow 32% Led by Communications and IT

Brazilian exports of high technology products were the ones that increased the most last ...

Brazzil Magazine covers

Brazilian Amazon Residents Get to Exploit Forest in Pioneer Project

The Ambé Project, the largest forest management project by a local community in a ...

Brazzil Magazine covers

Lula Boasts of Skipping New York and Rome to Visit 25 African Countries

Brazilian president Luiz Inácio Lula da Silva defended his “diversification” diplomacy and said that ...

Brazzil Magazine covers

Massacre’s Lesson: Brazil’s Landless Are Not Police Matter

Flávio Botelho, a Brazilian professor in the nucleus of agrarian studies at Brazil’s University ...

Brazzil Magazine covers

Brazil’s Fight to End Its Foreign Fertilizer Addiction

Brazilian state company Embrapa Solos (Soils), in partnership with the private sector, is developing ...