Brazilian Government and Analysts See Brazil’s GDP Growing 7.3% This Year

GDP growth in Brazil Analysts covering Brazil’s economy raised their forecast for GDP growth this year to 7.34%, according to a Brazilian central bank survey. Economists held their 2011 economic growth forecast unchanged at 4.5%, according to the median estimate in a survey of 100 analysts taken September 3 and published Monday. 

Analysts raised their outlook for annual inflation, as measured by the benchmark IPCA index, to 5.03%, from 4.99% a week earlier. The forecast exceeds the government’s 4.5% inflation target.

Monetary policy makers are likely to keep the benchmark lending rate in Latin America’s biggest economy unchanged at 10.75% through year end and boost the rate to 11.5% by the end of 2011, the survey showed.

Brazil’s economy grew 1.2% in the three months through June from the previous quarter, compared with a 2.7% expansion in the first quarter, the national statistics agency said last week. GDP grew 8.8% from a year earlier.

The central bank last week voted to hold the benchmark interest rate unchanged at 10.75%, citing lower inflation risks as economic growth slowed from its fastest pace in 15 years during the first quarter.

Brazilian central bank President Henrique Meirelles said he’s “comfortable” with the current pace of economic growth, adding that expansion will slow to a level consistent with long-term equilibrium.

Meirelles said GDP will expand an average 0.7% over the next two quarters.

“The central bank is comfortable with this growth, which is absolutely in line with predictions,” Meirelles told reporters in Brazilian capital Brasília. “We expect, looking ahead, moderate growth in the third and fourth quarters, leading to a level of economic growth around its long-term equilibrium rate.”

Meirelles reiterated the central bank’s forecast that Latin America’s biggest economy will grow 7.3% this year.

Mercopress

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Your email address will not be published.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

US Will Receive 1,500 Brazilian Students in January, All with Government Scholarship

Dilma Rousseff, the president of Brazil, announced her country will invest US$ 2 billion ...

After the US, Brazil Hints It’s Close to Accept New Honduras Government

The Foreign minister of Brazil, Celso Amorim, declared that the new president of Honduras, ...

Brazil: 2 Million in Rio Beach to Ring In the New Year

Hotels along the beaches of the Southern Zone of Rio are practically full for ...

Brazilian electrician Jean Charles de Menezes was killed by British police

British Officers Who Killed Brazilian by Mistake Won’t Be Punished

Eleven British police officers involved in the fatal shooting of a Brazilian man wrongly ...

Brazil's resort Lagoa do Coelho

UK Firm Builds Resort for Foreigners in Brazil’s Northeast

Brazil has long been famous for its breathtaking scenery, tropical climate, its cultural heritage ...

Brazil’s Itaíº Swallows BankBoston in Chile and Uruguay

The leading Brazilian bank Itaú announced yesterday it had reached a deal with Bank of ...

If Brazil’s Petrobras Is in the News It Ought to Have Struck Oil Again

Petrobras, Brazil's government-controlled oil and gas multinational announced on Thursday, July 7, a new ...

Brazil Sends 3 Ministers, Pelí© and Paulo Coelho to Davos

The World Economic Forum got started today in Davos, Switzerland. The theme of this ...

In Paraguay Brasiguayos Are Known for Being Hard Workers and Trigger Happy

Paraguay is legalizing the situation of Brazilians who live and work around the city ...

Who and What Is Killing Tourism in Brazil?

My wife and I have been engaged in the hospitality & tourism industry in ...