Brazil’s Industrial Capacity Nearing Its Limit

Brazilian market analysts and financial consultants interviewed last week by Brazil’s Central Bank expressed growing optimism over this year’s growth in the Gross Domestic Product (GDP).

The survey, released today, suggests that the GDP will end the year at 4.5%, compared with forecasts of 4.23% a month ago and 4.47% last week. The weekly rise is small, but it has gradually been maintained for 13 consecutive weeks.


The projection for 2005, on the other hand, suffered a slight decline, from 3.55% to 3.50%, back to its previous level.


The forecast for this year’s GDP reflects, in part, the resumption of industrial production, which the market expects to increase 6.61% this year, compared with last week’s estimate of 6.50%. Production, however, is pushing the limit of existing industrial capacity.


Still, it should be sufficient to meet the growing demand for Brazilian exports, which should generate a US$ 32 billion surplus in this year’s trade balance, according to the survey.


This performance has a positive impact on projections for the external current account surplus, which is expected to attain US$ 9.2 billion (as against last week’s estimate of US$ 8.97 billion), after interest payments on the debt are deducted.


The market raised its earlier expectations for foreign direct investments this year from US$ 11 billion to US$ 14.95 billion. The forecast for next year continues to be US$ 13 billion.


Agência Brasil
Translator: David Silberstein

Tags:

Ads

You May Also Like

Plans to Integrate Brazil to South America Don’t Take Indigenous Peoples Into Account

Twelve governments in South America, including Brazil, are planning to carry out a series ...

Fitch Examines How the Global Crisis Is Hitting Brazil

According to a new report by Fitch Ratings, the global credit crisis has exposed ...

Le Monde Names for First Time Ever Man of the Year. And Chooses Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva for French daily Le Monde is "Man ...

Guiní©-Bissau Once Again Gets Brazil’s Helping Hand

Technicians from the Brazilian government statistical bureau (Instituto Brasileiro de Geografia e EstatÀ­stica) (IBGE) ...

Despite Celebrities Participation Ice Bucket Challenge in Brazil Raises a Mere US$ 8,000

In Brazil, the ice bucket challenge, initiated in the US, has raised people’s awareness ...

Best Showing in 14 Years: UN Estimates Put Brazil Growth at 6% in 2008

Latin America's largest economy, that of Brazil, will likely end 2008 with an expansion ...

Brazilian Congress Rapporteur Calls for Expulsion of Ex-Chief of Staff

In 62 pages, federal deputy Júlio Delgado, from the PSB (Brazilian Socialist Party) of ...

October 23 – the Day the Music Died in Brazil

By voting not to ban the sales of guns and ammunition in the referendum ...

In Brazil, Banks Lead with US$ 10 Billion in Profits in First Half

Total profits of the four main sectors represented by Brazil's Bovespa (São Paulo Stock ...

Brazil Wishes to Free the Internet from US Control

At the 2nd Global Society of Information Summit, in November, in Tunis (Tunisia), Brazil ...