|
Amazon Body Care |
|
|
Who's Online |
|
We have 43 guests online |
|
Statistics |
Members: 494
News: 11474
Web Links: 0
|
|
Related Items |
-
Brazil and IMF Discuss How to Grow with Fiscal Responsibility
-
State and Market Need Join Forces, says Brazil's BNDES Chief
-
It's Time Brazil Adopts a More Flexible Monetary Policy, says BNDES Chief
-
Chief of BNDES Bank Guarantees Hot Economy for Brazil in Coming Months
-
Development Bank Chief Predicts Full Steam and 5% Growth for Brazilian Economy
-
Brazilian Finance Minister's Career Ends in Farce. Mantega Is the New Man.
-
Brazil's Sea of Mud Ends Up Swallowing Finance Minister
-
Nothing Changes Says Brazil's New Finance Minister
-
Brazil's New Finance Minister Is Italian Economist, Opposed to High Interest Rates
-
Nothing Will Change, Says New Brazilian Finance Czar
-
Uncertainty Over New Finance Chief Drags Brazilian Market Down
-
Brazil's New Finance Minister Wants GDP Over 4% in 2006
-
Belt-Tightening Won't Be Loosened, Says Brazil's New Finance Minister
-
Opposition Plans to Impeach Lula Do Not Disturb Brazil Stocks
-
Brazil's New Finance Czar Goes to War Against Inflation and High Interests
-
Brazil's New Finance Minister Announces His Team
-
No Change is Good News for Brazilian Investors
-
Rosy News in Brazil Keeps Market Humming Ahead
-
Finance Minister Expects 4.5% Growth in Brazil's GDP
-
Brazil Gets Boost After 4.5% Growth Forecast for 2006
-
Contrary to Experts Brazil's Finance Minister Forecasts a Minimum 4% GDP Growth
-
Brazilian Industry Urges Drastic Cuts in Expenditure and Taxes
-
Brazil Finance Minister Held Hostage and Robbed of All His Money
-
After Robbery Ordeal, Wife of Brazil's Finance Minister Refuses to Go to Police
-
Trouble in US and EU Won't Slow Down Brazil, Says Minister
-
US Recession Won't Reach Copacabana Beach, Says Brazilian Minister
-
Brazil Summons G20 Members for Meeting This Weekend in Washington
-
Recession Fears Knock Down Markets in Brazil, Mexico and Argentina
-
Brazilian Finance Minister Compares Global Crisis to 1929 Crash
-
Half of Brazilians Are Middle Class, Finance Minister Announces
-
JPMorgan: Brazil Is in Recession and Will Grow Mere 1.5% This Year
-
Brazil Injects US$ 42 Billion in Economy to Create More Jobs
-
Brazilian Economists Expecting Brazil Economy to Shrink
-
Brazil Expecting Economy to Shrink 0.30%, Worst in 17 Years
-
Brazil Admits Recession After Economy Shrinks Additional 0.8%
-
Brazil One of the First to Recover from Global Crisis, Says Minister
-
Brazil One of the First to Recover from Global Crisis, Says Minister
-
Brazilian Optimism Is Driving Dollar Down
-
In Brazil Recession Is Already History
-
Brazil Back to Black and Out of Recession, Say Authorities
-
Out of Recession Brazil Calls Price of Crisis Very Low
-
Brazil Minister Says Country Won't Change Exchange Despite Dollar Inflow
-
Stop Complaining on a Full Stomach, Brazil Tells Businessmen
-
OECD Sees Brazil Growing 4.5% in 2010 and 2011
|
|
Contribution |
| Have you got news? Do you have news, comment or story on Brazil you want to share with Brazzil? Just send it our way to brazzil@brazzil.com. | |
|
|
|
The Latest from Brazzil Magazine |
|
|
|
|
This Is Old GDP, Says Minister About Brazil's Just-Revealed Recession |
|
|
|
|
Written by Kelly Oliveira
|
|
Wednesday, 10 June 2009 |
|
Brazil's Finance minister, Guido Mantega, when commenting on the
Brazilian economy performance in the first quarter, which was reported
this Tuesday, June 9m by the IBGE (Brazilian Institute of Geography and
Statistics), told reporters that the just-released data represent an
old GDP, since the numbers refer to the first three months of the year.
He stressed that the Brazilian economy at the end of the second quarter is already presenting different, more positive numbers. According to him, the Brazilian economy has been showing a healthy ability to recover.
"As the fall last year was a big one, you have a slow recovery. This recovery will happen little by little, there won't be a feverish growth, in the second quarter and in the third. We are talking about a gradual improvement," the minister said.
Mantega says that Brazil should grow between 3% and 4% in the last quarter of 2009 and the same percentage in 2010. For this year, the minister forecasts growth of 1%. According to him, the result of the Gross Domestic Product (GDP) in the first quarter of the year is negative, but this reflects a situation of the "past".
Attention should not be focussed in the "rear-view mirror", as the country is already living another reality, said Mantega, pointing out the "clear signs of growth of the economy".
He recognized, however, that, for the time being, the performance of productive activity is still weak and more focused on civil construction and on the sectors that received tax breaks, like, for example, the auto industry, through lower Industrialized Product Tax (IPI) on sales of new vehicles.
Mantega said that this incentive, scheduled to remain up to the end of the month, should not be renewed. Both this measure and the benefits granted to the so-called white line sector (cookers and fridges, for example) were "temporary resources to grant the economy time to recover. As the economy shows signs that it is moving on its own accord, we can remove this stimulus."
The minister made these statements after participating in the 5th Globo News Forum, which focussed on the crisis. At the meeting, Mangega said that interbank credit is coming back to normal and that the government hopes for a favourable reaction in the domestic market.
To him, starting in the second half, Brazil should have overcome the credit and foreign financing difficulties. He bets on a "recomposing of foreign markets, as some countries should be growing more and buying more Brazilian products."
Mantega also said that today, a provisory measure should be published with the regulations of the Credit Guarantee Fund for Small and Medium Companies. Through this fund, the government should make available around 1 billion Brazilian reais (US$ 500 million) in lines to be obtained at the Brazilian Development Bank (BNDES) and another 4 billion reais (US$ 2 billion) at the Bank of Brazil.
According to the minister, this means that loans may rise as high as eight times this value, or 32 billion reais (US$ 16 billion), as the volume made available is there just to cover possible default. He observed that, in the case of the fund established for the naval industry aimed at supplying Petrobras offers, the funds reached 5 billion reais (US$ 2.5 billion).
During a presentation at the meeting, the minister said that the great challenge to be faced should be the reduction of banking spread (the difference between the rate for collection by financial institutions and the rate charged on loans). Whereas a real interest rate of 5% is practiced, "people borrowing from banks are paying 28%, 30% and up to 40%." He recalled that the government plans to continue stimulating competition through public banks.
In an answer to economist José Roberto Mendonça de Barros, who criticised higher public spending, Mantega said that the government's greater spending was fundamental to alleviate the effects of the international financial crisis and mentioned, for example, the investment of 160 billion reais (US$ 80 billion) by the BNDES.
ABr
|
|
|
|
|
Home
|
|
Brazzil Magazine - Since 1989 trying to understand Brazil |
|
|
|
|
|