Heated Domestic Demand Ups Brazil GDP to 5.2% This Year

Brazil store The Brazilian GDP is forecasted to expand 5.2% in 2007, up from the original 4.5%, said the Applied Economics Research Institute, IPEA, an office from Brazil's government executive. The quarterly report indicates that the industrial sector is estimated to grow 6% this year, up 0.8 percentage points above the first estimate.

The IPEA report coincides with Brazil's National Industry Confederation, CNI that also reviewed percentages upwards. CNI points out that domestic demand is playing a pivotal role in the current expansion of the Brazilian economy.

Brazil's Central Bank reported that foreign direct investment reached US$ 33.7 billion in the first eleven months of the year, which represents a 106% hike over the same period a year ago. The sum was described "as the highest ever in the country's history".

But the bank also revealed a wider-than-expected current account deficit in November, reversing a surplus in external accounts a year earlier as the trade surplus fell and companies boosted profit remittances abroad.

The deficit reached US$ 1.3 billion in November compared with a surplus of US$ 1.39 billion in the same month a year ago, the Central Bank said. In October, Brazil had current account deficit of US$ 42 million, the central bank reported last month.

In the 12 months through November, Brazil posted a current account surplus equal to 0.37% of gross domestic product, GDP, compared with 0.6% in the 12-month period through October.

For 2008, the central bank forecast a current account deficit of US$ 3.5 billion, the first deficit in the external accounts since 2002. The bank estimates foreign direct investment of 28 billion.

The current account balance tracks a country's net flow of external transactions, including foreign trade, interest payments and services such as tourism.

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Your email address will not be published.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

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 ...

Numbers Show Indy 500 Has Become Brazilians’ Race to Lose

For years now I’ve been trumpeting the accomplishments of Brazilians at North America’s crown ...

Rousseff Says Brazil Is Just Protecting Itself While US Is Distorting World Trade

Brazilian president Dilma Rousseff, carrying on a tradition since 1947 at the United Nations ...

Brazil’s Lula Confesses Obsession: Cutting Bank Spreads

Brazilian Aldemir Bendini is the new chief executive of federally owned Banco do Brasil. ...

Balance of Rio’s One-Day Drug War: One Arrested, 12 Killed

Rio de Janeiro has said no to an offer by the Brazilian federal government ...

90% of Brazil’s Sewage Is Dumped Untreated In Rivers and Lakes

Wednesday, March 22, on World Water Day, a director of a Brazilian NGO, SOS ...

Second Killer of US Nun Arrested in Brazil

Brazil’s Federal Police arrested, today, Clodoaldo Carlos Batista, suspected of being the second killer ...

Benchmark Rate Goes Up 8th Time in a Row in Brazil

Latin American equities leapt on the session, although trading was somewhat lighter, as Brazilian ...

Meeting of Portuguese-Speaking Countries Discuss Politics and Spelling

The 10th Regular Meeting of the Council of Ministers of the Community of Portuguese-Speaking ...

Brazil Only Wants Bolivian Gas If It Is Cheap Enough

In testimony before the Brazilian Senate Foreign Relations and National Defense Commission, Brazil’s Minister ...