Brazil: Economy expected to grow by 4.5 percent in 2008 and 2009, World bank says

10 January 2008

London, United Kingdom, 10 Jan – The Brazilian economy is expected to see growth of 4.5 percent in the next two years, a period in which developing countries will manage to absorb the negative effect of the Us economic slowdown, according to a report from the World Bank.

In its document entitled, “Global Economic Prospects for 2008,” presented Wednesday in London, the World Bank forecast for 2008 slightly lower gross domestic product (GDP) growth for developing countries, of 7.1 percent, despite being far higher than the 2.2 percent expected for developed nations.

The report said that the rate of growth of the world economy had fallen from 3.9 percent in 2006 to 3.6 percent in 2007, a fall which was fundamentally due to the slowdown in developed countries, with 3.3 percent growth projected for 2008.

The World Bank warned of the risk of a potential recession in the United States and of increased volatility of the financial markets.

The World Bank projects growth of 6.1 percent this year and 5.7 percent in 2009 for Europe and Central Asia, against 6.7 percent in 2007.

The GDP of Eastern Asia and the Pacific rose by around 10 percent in 2007 with China exceeding 11 percent, but with the region’s growth slowing: around 9.7 percent in 2008 and 9.6 percent in 2009.

In the Middle East and North Africa, the World Bank estimates economic growth will reach 5.4 percent this year due to oil price rises, as compared with 4.9 percent in 2007.

Sub-Saharan Africa, which posted growth of 6.1 percent in 2007, is expected to see growth of 6.4 percent in 2008.

GDP growth in Latin America and the Caribbean, of 5.1 percent in 2007, is expected to total 4.5 percent this year and 4.3 percent in 2009. (macauhub)