OECD Sees Brazil Growing 4.5% in 2010 and 2011

Higienópolis, in São Paulo, Brazil The Brazilian economy will experience a robust growth in 2010 and 2011, in the range of 4.5%, while Mexico will recover from deep recession beginning next year with a GDP expansion of 2.7% and 3.9% in 2011, according to the Organization for Economic and Development Cooperation, OECD.

Chile meantime is forecasted to grow 4.1% in 2010 and 5% the following year, following a 1.8% contraction in 2009.

Mexico is the only Latin American member of OECD while Brazil, Latin America's largest economy and Chile are candidates to become full members of the club which brings together the world's 30 most industrialized countries.

"Mexico has suffered its worst recession (8%) since the foreign exchange crisis of 1994," points out OECD indicating lower oil prices, a fall in exports, the sanitary emergency with the outbreak of the A/H1N1 virus flu plus less remittances and tourism have had a devastating impact.

However things have begun to change with the recovery of the US economy and an increase in the price of oil, which have seen a "significant deceleration in the fall of economic activity and signs of recovery in some sectors".

OECD estimates that with the fiscal stimulus, "recession bottomed out in the third quarter of 2009 and Mexico should begin growing modestly in the first quarter of 2010.

Regarding Brazil, OECD estimates strong growth in the next two years and no expansion this year. The forecast is an improvement from the previous report which was estimating a negative 0.8% in 2009 and 4% in 2010.

"Strong domestic demand boosted by flexible policies," have helped the Brazilian economy overcome the situation and as early as 2010 "the government could begin to roll back budget incentives as the economy consolidates".

As to Chile it has suffered the impact of the collapse of world trade and commodities prices which make a small, open economy very dependent on mineral and agriculture exports, "highly vulnerable".

OECD concludes that the Chilean economy, after suffering a contraction this year, should begin gradually to recover next year and reach above potential growth in 2011.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Avant-garde Enigma

Despite the moralistic streak at Globo, the network is not abandoning its lewd characters. ...

U.S.A. Calendar

SUNDAY 1 POMPANO BEACH, FLOR. 7:00 PM – Pagode at Panorama – (305) 784-8136 ...

Brazil and Emirates Talk Exports

Opportunities for exports of services from Brazil to the United Arab Emirates were among ...

Brazil to Pay 13% of Debt Due in 2006. Rest to Be Renegotiated.

The Brazilian government’s federal debt (domestic and foreign together) is expected to grow at ...

Banned in Brazil Paris Hilton’s Beer Commercial Becomes YouTube Hit

After paying a fee of about US$ 800,000 to socialite Paris Hilton for her ...

The B-Files

The intends to foster awareness and appreciation of Brazilian history as a national archive ...

Brazilian Congress Holds Session in Solidarity with Palestinians

The Brazilian House of Representatives will hold today, November 29, at 10 in BrasÀ­lia, ...

Bye Bye, Rat Race! Hello, Brazil!

My leaving the United States for Brazil, a place I’d never been, was like ...

Brazil’s Surplus Reaches US$ 21 Billion for the Year

The Brazilian trade balance registered a surplus of US$ 1.693 billion on the first ...