Fitch reduces Brazil’s GDP growth projectionDecember 13th, 2011 - 1:46 pm ICT by IANS
Rio De Janeiro, Dec 13 (IANS) Credit rating agency Fitch Ratings Monday lowered Brazil’s GDP growth projection for 2011 from 3.5 to 2.8 percent.
The announcement came after Brazilian financial analysts had also reduced their estimates for the country’s GDP growth in 2011 to 2.97 percent, reported Xinhua.
In its latest quarterly Global Economic Outlook, Fitch put Brazil’s GDP growth next year at 3.2 percent, and described it as “below potential”.
Fitch said Brazil’s growth will be supported by domestic demand, but will be “dampened by high international financial volatility affecting the currency, commodity and domestic asset markets, which in turn hits domestic confidence”.
The country’s growth rate in 2013 is expected to be 4.5 percent, Fitch said.
“Brazil’s economy decelerated this year due to tighter monetary policy, including prudential measures to control credit growth and a restrictive fiscal stance. The manufacturing sector was hit by the strength of the Brazilian Real until recently and the withdrawal of stimulus measures,” the agency said.
Fitch also stressed that structural issues such as Brazil’s high tax burden and weak infrastructure continue to hinder the Brazilian industry’s competitiveness.
According to the agency, major advanced economies will register an average 1.3 percent growth rate this year. The figures are expected to fall to 1.2 percent in 2012, and rise to 1.9 percent in 2013.
BRIC countries, namely Brazil, Russia, India and China, on the other hand, are expected to sustain a “robust” economic growth in the near future, reaching 6.3 percent in 2012 and 6.6 percent in 2013.
- Brazil's GDP growth forecast lowered - Jul 03, 2012
- Fitch downgrades India's rating to 'negative' - Jun 18, 2012
- Brazilian government sees economy expanding through 2014 - Feb 14, 2012
- Brazilian economy grew 2.7 percent in 2011 - Mar 07, 2012
- S&P; cuts Spain rating - Apr 27, 2012
- Fitch cuts India outlook to negative, Pranab responds (Lead) - Jun 18, 2012
- Fitch maintains Brazil's investment rating at BBB - Oct 26, 2011
- Crisil cuts India's growth forecast to 5.5 percent - Aug 07, 2012
- IMF pares India's growth to 6.1 percent - Jul 16, 2012
- Italy's GDP to drop in 2012 - May 23, 2012
- Brazil announces plan to boost exports - Feb 18, 2012
- China's GDP to grow 9.6 percent in 2011: ADB (Lead) - Apr 06, 2011
- `Eurozone crisis to dent Canadian growth' - Jan 19, 2012
- S&P; upgrades South Korea's sovereign rating - Sep 14, 2012
- China's GDP will fall to 9.8 percent in 2011: Think tank - Jan 24, 2011
Tags: asset markets, brazilian industry, brazilian real, bric countries, competitiveness, financial analysts, financial volatility, fiscal stance, fitch ratings, gdp growth, global economic outlook, growth projection, manufacturing sector, monetary policy, prudential, rio de janeiro, robust economic growth, stimulus, tax burden, xinhua