Brazil’s economy expected to grow between 3.3 and 3.7 pct

29 August 2006

Sao Paulo, Brazil, 29 Aug – The Brazilian economy is expected to grow by between 3.3 and 3.7 percent, which is below government projections of up to 5 percent, Brazilian financial newspaper Gazeta Mercantil reported.

The paper cited analysts saying that projections for the performance of the Gross Domestic Product (GDP) in the second quarter of the year – due to be officially announced Thursday by Brazil’s Geography and Statistics Institute – would not be over 1.1 percent compared to the previous quarter, pointing to a slowdown that would lead to GDP annual growth of between 3.3 and 3.7 percent.

Chief economist at Mellon Global Investments, Solange Srour told the paper that she expected an increase of 0.6 percent as compared to the previous quarter and of 1.7 percent year on year.

Saying that the forecast is lower than initially expected due to figures published for June, Srour added that GDP growth would not be of over 3.6 percent by the end of the year. (macauhub)