Site icon

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

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

Next: Brazil’s Trade Surplus in First Four Months 68% Better than Last Year’s
Exit mobile version