Brazil: Analysts predict 2.4 pct growth for 2009

6 January 2009

Rio de Janeiro, Brazil, 6 Jan – Brazil’s economy is set to expand by 2.4 percent this year with inflation reaching 5 percent, according to forecasts from economists at country’s central bank.

The forecasts indicate a 0.04 percent fall in economic expansion compared to the previous prediction for 2.44 percent, significantly lower than the latest GDP increase forecast for 2008 of 5.62 percent.

The most recent predictions by the Brazilian government for this year’s growth lie between 3.0 and 4.0 percent after downward revision from the previous 5.0 percent estimate due to worsening world financial conditions.

The Folha de Sao Paulo newspaper reported that the central bank analysts were pessimistic over prospects for Brazil’s foreign trade performance in the coming year, lowering the forecast surplus from US$ 15 billion to US$ 14.5 billion.

But foreign investment in Brazil is predicted to reach US$ 23 billion and surpass earlier forecasts. (macauhub)