`Brazil ready to tackle ripple effects of eurozone crisis’May 23rd, 2012 - 1:22 pm ICT by IANS
Rio de Janeiro, May 23 (IANS) Brazilian Finance Minister Guido Mantega has said that his country is ready to cope with any possible ripple effects the eurozone debt crisis may bring about on its economy.
The fiscal policies carried out in Europe will “have negative effects not only in the continent but around the world”, Mantega told a Senate hearing, adding that even dynamic economies such as China and India are likely to experience some deceleration if the crisis worsens.
The Brazilian economy has a solid fiscal situation, large foreign reserves and a strong domestic market to fall back on if demand from Europe dwindles, Mantega noted.
Brazil Monday announced a new stimulus package, which includes tax cuts for the automobile industry and lower interest rates for funds used in the manufacturing sector, reported Xinhua.
Mantega described the recent depreciation of the Brazilian currency, the real, as positive, as it helped boost the competitiveness of Brazilian products in the global markets.
Brazil’s currency has slipped considerably against the US dollar in the past few weeks, with the exchange rate closing at 2.04 reais to the dollar Monday, the weakest in three years.
The finance minister lowered Brazil’s growth projections for this year from 4.5 percent to 4 percent, which is still higher than the 2.7-percent rate posted last year.
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- Brazil's economy growing again, says finance chief - Sep 20, 2012
- Brazil cuts taxes to spur growth - Dec 02, 2011
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- Brazil criticises developed countries' monetary policy (Lead) - Mar 02, 2012
- Brazilian president meets IMF head on euro crisis - Dec 02, 2011
- `Brazil withstanding worst year of global crisis' - Aug 31, 2012
- No short-term solution to economic crisis: Brazil - Jul 05, 2012
- 'Brazil committed to halting currency appreciation' - Mar 23, 2012
- Brazilian economy grew 2.7 percent in 2011 - Mar 07, 2012
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Tags: automobile industry, brazilian currency, brazilian economy, brazilian products, debt crisis, deceleration, dynamic economies, finance minister, fiscal policies, fiscal situation, global markets, growth projections, guido mantega, manufacturing sector, reais, rio de janeiro, ripple effects, senate hearing, stimulus package, xinhua