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Economic growth in Brazil will be 3.5% this year and in 2007, lower than the world average, forecasts the International Monetary Fund in its annual World Economic Panorama report that was released this week.
The IMF forecasts average world economic growth at 4.9% for 2006 and 4.7% for 2007. The IMF forecast for average developing nation growth is 6.9% this year. Meanwhile, China is expected to grow 9.5%, India 7.3%, and the African continent 5,7%. In 2004, world average economic growth was 5.3%, with Brazilian GDP rising 4.9%. In 2005, the world grew 4.8% and Brazil 2.3%. "There are signs of increased activity in the retail sector and industrial output, along with lower interest rates and moderate inflation, all of which point to higher growth in 2006," says the IMF report. "To continue the progress made in reducing public debt, it will be essential to resist pressure to slacken fiscal restraints while maintaining a high primary surplus." ABr
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The country had only one view : to export more, and they did.
Brazil did not do something magic : the demand was external only, and that has nothing to do with the decision taken in Brazil.
But Lula and his government, daily, proclaim how Brazil is doing well BECAUSE of their policies.
WRONG ! SIMPLY WRONG !
In fact Brazil did very poorly internally if one excludes the positive due to the external demand.
Quite a shame.