Brazil: OECD forecasts economic downturn of 0.3 pct this year

1 April 2009

Paris, France, 1 April – The Brazilian economy is due to go into recession this year, a situation that is expected to improve in 2010, with the country’s Gross Domestic Product (GDP) rising 3.8 percent, according o a report published Tuesday by the Organization for Economic Cooperation and Development (OECD).

“GDP is expected to marginally shrink in 2009,” the OECD said in its intermediate report, pointing to a downturn of 0.3 percent.

The OECD added that the GDP downturn for this year is the result of a deterioration of industrial activity in the last quarter of 2008, which is expected to start showing some signs of recovery.

Improvement in the credit conditions and maintenance of an expansionist policy are expected to help the economy to recover at the end of 2009 and in 2010, the Paris-based organisation said.

The rate of inflation is expected to remain at 4.3 percent this year and next. (macauhub)