Brazilian economy ’still expanding’
The Brazilian Central Bank predicts that the country’s economy will expand by 5.6 per cent this year, which could be good news for Brazilian property investors.
Its gross domestic product estimate has been revised upward from the original figure of five per cent.
Economists anticipate that Brazil will finish 2008 with growth of about 5.2 per cent.
The Brazilian Central Bank also said inflation is likely to reach 6.2 per cent this year, but forecast that it will reach 4.7 per cent in 2009.
Meanwhile president Luiz Inacia Lula da Silva has called on consumers to increase spending in order to help the country’s economy overcome the credit crunch.
"Don’t be afraid of consuming with responsibility. If you have debts, try to balance your budget. But if you have money and want to buy a refrigerator, an oven or change your car, don’t give up your dream fearing the future," said President Lula.
