Contrary to Experts Brazil’s Finance Minister Forecasts a Minimum 4% GDP Growth

Guido Mantega, Brazil’s  Finance Minister is still maintaining his estimate of growth of between 4% and 4.5% for the Brazilian Gross Domestic Product (GDP) this year, despite the reductions forecasted by the market.

"The 3.5% forecasts are pessimistic," stated Mantega, in reference to the most recent analyses.

Financial institutions heard by the Central Bank have reduced their forecasts from 3.55% to 3.53%. "The research changes according to the wind," commented Mantega. According to the minister, the analysis is based on momentary happenings and does not reflect the global context.

The new estimates have been made based on the performance of industries in the month of July, when sales dropped 3.75%. To the minister, this cannot be analyzed alone, as lower sales were influenced by the World Cup, in which Brazil was early disqualified, various strikes and even safety problems in São Paulo, caused by prison gangs who terrorized the city.

"In July there was already an acceleration of the Brazilian industry. The auto industry has accelerated, the paper and cardboard industry has too. There is greater consumption of electric energy. We already have all indications that the industry is growing over 4%," he pointed out.

Also according to the minister, "the salary mass has grown. All salary increases in the first half of the year were greater than inflation. Brazilian citizens now have a greater buying power."

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