Brazil boosts 2010 growth forecast

March 12th, 2010 - 11:14 am ICT by IANS  

Brasilia, March 12 (IANS/EFE) The Brazilian government has raised its projection for economic growth this year from 5.2 percent to more than 5.7 percent.
“The vigour the economy had (pre-recession) was fully resumed. Growth will be better than 5.7 percent,” Finance Minister Guido Mantega told a press conference here Thursday.

Mantega called a 5.7 percent expansion “sustainable” and said Brazil will enjoy “quality growth” thanks to increased investment and a recovery of manufacturing.

Latin America’s biggest economy surged 4.3 percent in the fourth quarter of 2009 and is on course to continue growing, the minister said.

Noting domestic consumption’s major role in GDP, he cited January’s retail sales figures, which were up 2.7 percent from December and 10.4 percent from January 2009, as a reason for optimism.

The finance minister said last year’s 0.2 percent decline in GDP was “reasonable”, given the severity of the global economic crisis, which did far less damage in Brazil than in many other countries.

If Mantega’s optimistic forecast holds up, 2010 will see Brazil’s best economic performance since 2007, when GDP increased 6 percent.

–IANS/EFE

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