Sao Paulo, Brazil, 08 Dec – Forecast growth of Brazil’s Gross Domestic Product (GDP) in 2005 was lowered from 3.5 percent to 2.3 percent, the Institute of Applied Economics Research (IPEA) said in Sao Paulo Friday.
Despite the lowered forecast, which was due to a fall in the economy’s growth rate of 1.2 percent in the third quarter of 2005, some economists have positive expectations for the final two months of the year.
Figures from the IPEA, a government-managed institution, show that industrial stocks fell by 80 percent year-on-year in the third quarter.
Fábio Giambiagi, an IPEA economist, said that the sharp decline in stocks could lead to a lack of goods during the Christmas period, if they are not replaced.
As well as the decreased GDP forecast, the IPEA also projects that investment will decrease from the initially expected growth rate of 5.4 percent to 0.9 percent and consumption estimates also fell from 3.4 percent to 2.8 percent. (macauhub)