Brazil to Grow 3% or Less This Year, Say Experts

Brazil’s one hundred leading corporations and independent analysts estimate that the country’s growth this year will be in the range of 3% or lower, according to the latest report from the Central Bank.

However for 2007 the private sector expansion forecast remains at 3.5% even when the government is working on a 4% hypothesis.

Inflation is estimated in the range of 3% and 4.2% in 2007. The Central Bank target is 4.5% both in 2006 and 2007.

Money operators estimate that the Central Bank basic interest rate, currently at 14.25% will undergo monthly cuts reaching 13.5% by the end of 2006 and 12.5% by December 2007.

Brazil’s trade surplus for 2006 is estimated to reach 43.5 billion US dollars, up half a billion from the earlier estimate and similarly with the trade surplus for 2007: 36.55 billion, up from a previous estimate of 36 billion.

Meanwhile the Argentinean economy is supposed to grow over 8% this year. The sustained growth of the Argentine economy which is forecasted to range between 8.5 and 9% in 2006 is based on manufacturing, the building industry and agriculture, according to preliminary data to be released later this week by the Statistics and Census National Office. 

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