Brazil expected to post growth of less than Latin American average in 2006

4 April 2006

Sao Paulo, Brazil, 04 April- The Brazilian economy is projected to grow 3.8 percent this year, the lowest rate amongst the main Latin American economies which, together are expected to grow 4.1 percent, according to the International Financial Institute (IFI).

The indicators improved for all the countries for which the Institute published forecasts with the exception of Argentina where inflation is expected to rise to 14.9 percent (12.3 percent in 2005) against an average of 5 percent for the region.

The IFI recommended that some of the region’s countries should continue to use the favorable environment to reduce public debt.

“The combination of better fiscal performance with export growth and issuing debt in local currencies should reduce the dollar debt of those countries to something around 105 percent of exports, against 232 percent in 1998,” the report said.

The Inter-American Development Bank (BID) has a similar forecast, saying that Brazil should post growth of 4 percent and Argentina of 6.7 percent. (macauhub)