2010: Economists See Brazil’s GDP Growing 5.08% and Industry 8%

Recife, Brazil Brazilian financial market have slightly improved their expectation of growth for the Gross Domestic Product (GDP) of Brazil in 2010. They are now betting that the Brazilian economy will expand 5.08% this year instead of the 5% forecasted the previous week.

The percentage of growth of industrial production for next year has also risen, from 7.11% to 8%. Expectations in the Focus bulletin were disclosed by the Central Bank.

The forecasts for economic growth serve as a thermometer to show the demand for company products, as well as to estimate the availability of jobs and the salary perspectives of the labor market.

According to the Focus bulletin, the forecasts for retraction of the GDP in 2009 dropped from 0.23%, the index forecasted in last week’s edition of the bulletin, to 0.22%, in the edition just issued.

Expectations for reduction of industrial production in 2009 were kept at 7.62%. Four weeks ago, market expectations for retraction of industrial production this year were 7.72%.

The estimated exchange rates for the end of the period were also maintained stable, both for 2009 (1.74 Brazilian reais per US dollar) and for 2010 (1.75 reais per dollar).

The forecast for the ratio between the public sector net debt and GDP in 2010 rose from 42.90% to 43%, and has been maintained stable for 2009, at 44.80%.

The forecast for the trade surplus (the positive difference between exports and imports) dropped from US$ 25 billion to US$ 24.57 billion this year. For 2010, analysts expect a positive result of US$ 11.65 billion, against the US$ 11.30 billion forecasted previously.

The expected deficit in current account transactions in 2009 (the purchase and sale of goods and services by Brazil on the foreign market) has also been expanded, from US$ 18.20 billion to US$ 19.05 billion. For 2010, the expectation is for a deficit of US$ 40.85 billion, an even greater figure than the US$ 40.35 billion forecasted last week.

The expected foreign direct investment (resources for the productive sector in the country) was maintained at US$ 25 billion in 2009 and US$ 35 billion in 2010.

ABr

Tags:

You May Also Like

Brazilian Indians Lose Land to Ranchers

A Brazilian Federal Court in Mato Grosso do Sul reached a verdict which granted ...

Rio Favelas Are Hurting the Brazilian Army

Rio’s favelas are not good for the Brazilian army. Conflict resolution is not the ...

Oil Bomb May Explode Another Presidency in Bolivia

Bolivian President Carlos Mesa faces further political turmoil. To the dissatisfaction of multinational energy ...

An Inquiry on Brazil, That’s What We Need

{mosimage}The Parliamentary Commission of Inquiry (CPI) into the operation of the Brazilian Post Office ...

Pope Intercedes and Brazilian Bishop Ends Hunger Strike

Bishop Dom Luiz Flávio Cappio ended his 11-day hunger strike after a meeting with ...

At 6.5%, Brazil Inflation Hits Ceiling Set by the Government

The Broad Consumer Price Index (IPCA) closed out July at 0.01%, the Brazilian Geography ...

Brazil Pushes for Urgent and Aggressive Free Trade Talks With Arabs

Led by Brazil the Mercosur wants to return to free trade treaty talks with ...

Brazil Promises Light for All by 2008

Brazil’s "Light for All" program will provide electricity for more three million Brazilian this ...

Brazilian Oil Spill Hurts 3,000 Fishermen

The State Environmental Control Commission from the southeastern Brazilian state of Rio de Janeiro ...

Brazil Wants UN Force to Stay in Haiti After Elections

The United Nations (UN) Stabilization Mission in Haiti (MINUSTAH) may stay in the country ...