Brazil's credit volume should continue to grow in 2008. So expects Altamir Lopes, the head of the Economics Department at the Brazilian Central Bank. According to data disclosed by the Bank today, on December 26, total credit reached 908.775 billion Brazilian reais (US$ 507.440 billion) in November, and projections for next year forecast a 20% growth.
In 2008, credit volume is expected to correspond to 37% of the Gross Domestic Product (GDP), the sum of all riches produced in the country. In November, the credit to GDP ratio stood at 34.3%.
"The credit volume compared with the GDP grew 3.6% this year. Should we continue to grow at this pace, then it should reach approximately 37%," said Altamir Lopes.
He also stated that credit volume might reach the historic mark of 1 trillion reais (US$ 558.3 billion), but did not risk setting a date for it to happen.
"We now stand at 909 billion reais (US$ 507.5 billion), so it will not take much for us to reach the trillion mark."
In the opinion of the head at the Economics Department of the Central Bank, although real estate credit is expected to continue growing at expressive rates, the driving factors for funding should be companies and natural persons.