Sao Paulo, Brazil, 11 March – The Brazilian economy is expected to see close to zero growth in 2009, as a result of a sudden halt in economic activity, according to a projection from Brazil’s National Confederation for Industry (CNI).
This projection from the CNI, the employer body that represents the sector in Brazil, is a significant downward review of the previous projection of between 1.8 and 2.4 percent Gross Domestic Product (GDP) growth this year.
The CNI’s projection also shows a “high probability” of the Brazilian industrial sector ending 2009 with negative growth, due to a string downturn in the fourth quarter of 2008 an the beginning of this year.
Analysts have already said that Brazil is likely to go into technical recession this year, with economic activity falling for two consecutive quarters.
In 2008 the Brazilian economy posted growth of 5.1 percent against 2007, despite a slump in the fourth quarter as a result of the international economic crisis.
The drop in the fourth quarter of 2008 was 3.6 percent against the third quarter, which was the biggest fall since 1996, according to Brazil’s Geographical and Statistics Institute (IBGE). (macauhub)