Brazilian Industry Sees Brazil’s GDP Falling 0.4% This Year

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Brazilian currency, the real
Brazil's National Confederation of Industries (CNI) announced this June
25 that it projects a 0.4% reduction in the Brazilian Gross Domestic
Product (GDP) this year. Despite the negative projection for 2009 as a
whole, the organization expects the economy to grow in the second
quarter.

CNI forecasts, however, that the industry will continue to be the sector most seriously affected by the crisis. The organization is working with a projection of a 3.5% reduction in the industrial GDP.

The organization also informed that the industrial GDP has decreased 11.1% in the accumulated result for the first two quarters, and that industrial production in the first four months this year was 15% lower than in the same period of 2008.

The organization's expectation regarding gross formation of fixed capital in 2009 is of a 9.10% decrease, whereas family consumption should see a 0.7% reduction.

Petrobras and Vale

Two Brazilian giants in the area of oil and mining, respectively, Petrobras and Vale signed June 25 a memorandum of understanding for a partnership in exploration and production of gas and oil in three blocks in the Espí­rito Santo Basin, located on the coast of Espí­rito Santo and part of concession BM-ES-22.

The document establishes the bases for exploration of the fields and was presented by Vale president Roger Agnelli and Petrobras president José Sergio Gabrielli.

According to the memorandum, Vale may have up to 25% of the exploration rights for the area. The partnership still needs approval by the National Petroleum, Natural Gas and Biofuel Agency (ANP).

The blocs were acquired by Petrobras in the 6th ANP Tender Rounds and are located at water depths of between 1,000 and 2,000 meters, in the post-salt layer.

ABr

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