Brazil predicts higher economic growth for 2012

December 21st, 2011 - 1:26 pm ICT by IANS  

Rio De Janeiro, Dec 21 (IANS) Brazilian central bank president Alexandre Tombini said Tuesday the country’s inflation rate will be lower and economic growth higher in 2012 than this year.

In the first 11 months of this year, Brazil accumulated an inflation rate of 5.97 percent. The inflation target set for both this year and next year is 4.5 percent with a two percentage point tolerance, which means the inflation rate cannot exceed 6.5 percent, reported Xinhua.

Tombini said though his country is not immune to the world economic crisis, it still has some room to manoeuver.

In the first three quarters of this year, Brazil registered a 3.2 percent economic growth rate and the government believes the economic growth rate for the whole year will stand at 3.2 percent.

However, financial market economists in Brazil say the country’s economic growth rate for this year will be below 3 percent.

Commenting on the state of the US and European economies, Tombini said that the US has experienced a rise in consumption but it is based on a reduction in savings, rather than the growth of domestic market.

The central bank president also said that Europe will have low growth in the coming months, with some countries undergoing recession.

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