• Categories
  • Archives

Shrinking Lasted Only Three Months. Brazil Is Growing Again

Civil construction in Brazil The Brazilian economy grew at its fastest pace in over a year and a half in November, reversing a three-month contraction, as a recovery in consumer spending helped Latin America’s largest economy shrug off a global slowdown. Yields on interest rate futures rose. 

Seasonally adjusted economic activity climbed 1.15% in November from October, the fastest pace in 19 months, the central bank said in a report published on its website Monday.

The increase in economic activity ended three straight months of declines from August through October, the longest contraction since the one that followed the bankruptcy of Lehman Brothers Holdings Inc. in 2008.

Since August, President Dilma Rousseff’s administration has cut the benchmark interest rate three times, lowered taxes on consumer goods and eased curbs on credit to try to revive growth and protect Brazil from the European debt crisis.

The non-seasonally adjusted economic activity index rose 0.79% from a year earlier, the central bank said. The yield on the interest rate futures contract maturing in January 2013, the most traded in São Paulo Monday, rose two basis points, or 0.02 percentage point, to 10.03 percent in Brazil. The real appreciated 0.3% to 1.7817 per dollar.

Even so, the central bank is expected to continue to cut borrowing costs at its next two meetings, as “international jitters” following Standard & Poor’s decision last week to cut the ratings of nine Euro-region nations will weigh more heavily with policy makers than domestic data.

Brazil will grow 3.6% this year, according to an International Monetary Fund forecast, slower than Russia, China and India, the other so-called BRIC nations. China is also studying measures to shore up consumer spending in the face of a global slowdown, Commerce minister Chen Deming said this month.

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Your email address will not be published.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

Brazil: Expect a No-Bubbles Growth

According to Brazil’s Central Bank president, Henrique Meirelles, the country is ready for renewed ...

Only 14% of Brazilian Women Hold Executive Positions

In Brazil, women stay in school longer and are financially responsible for an increasing ...

An Amazon Rendezvous

Here’s Parintins. A place of magic and mystery. We felt something special right from ...

Thai Army and Navy Buy Brazilian Embraer’s Long Range Jet

The Royal Thai Army and the Royal Thai Navy have signed agreements to buy ...

Brazil Expecting a Lot from Biodiesel

Biodiesel, a fuel of vegetable origin, derived from such sources as the castor-oil plant, ...

OAS in Favor of Maintaining Brazil as Head of Haiti’s UN Forces

In a note released Wednesday, January 11, the Organization of American States (OAS) expressed ...

Brazilian Oil Industry Lacks Specialized Staff and Equipment

Brazil’s oil and gas sector should receive investment of US$ 100 billion over the ...

Brazil Finds New Huge Oilfield, Possibly World’s Third Largest

Brazil keeps finding huge new oil fields. The director general of Brazil's National Petroleum, ...

Over Half of Brazil’s New Cars Run on Gas, Ethanol or a Mix of Both

Demand for ethanol made from sugar cane is booming in Brazil, where it is ...

Runoff’s First Poll Shows Lula Ahead in Brazil

Brazilian President Luiz Inácio Lula da Silva launched his runoff presidential campaign leading his ...