Brazilian property investors take note – President Lula suggests economic growth
Those considering buying property for sale in Brazil could be interested to learn that the government remains buoyant about the Latin American nation’s economic situation despite the spiralling financial crisis being felt worldwide.
President Luiz Inacio Lula da Silva this week said Brazil’s economy will grow by four per cent in 2009 despite the global economic slowdown and financial turmoil.
The comments were made during a meeting of congressional leaders and cabinet ministers that was called to focus on the solidity of the South America’s leading economy.
Finance minister Guido Mantega is quoted by TMCnews as telling reporters the government believes there is no need for an additional package to spur on the economy.
"There won’t be a recession, there will be a deceleration and once that juncture is passed, we will be in favourable conditions to continue growing. Brazil is in a more favourable situation than that of the rich countries and also in relation to the rest of the emerging countries," Mr Mantega added.
According to the report, the nation’s gross domestic product boomed by 5.4 per cent last year and was forecast to grow by at least the same in 2008 – before the financial meltdown.
However, the minister claimed the situation in Brazil is under control thanks to a number of counter-cyclical measures taken by the government, which will maintain growth levels to around four per cent next year.
The reduced level of activity experienced in Brazil is down to an overseas uncertainty over the nation’s economic prospects, which has "contaminated" confidence like the nation is suffering the same conditions, he explained.
Mr Mantega announced that participants at the conference had agreed to give governors the opportunity to pass on an additional 60 days for businesses to pay state and municipal tax at the end of the year.
This contrasts to other economies such as those in western Europe, as the British prime minister Gordon Brown last week warned that the struggling economy had led to the potential for deflation.
Mr Brown issued the warning when trade secretary Lord Mandelson confessed a multi-billion pound tax cut would be paid for in tax rises.
"The problem has been inflation – and inflation combined with the credit crunch. Next year the problem is deflation and the problem of inflation close to zero," the prime minister told his opposition leader David Cameron.
Meanwhile, in response to the International Monetary Fund’s (IMF) prediction that Brazil’s economy would only grow by three per cent next year, the leader of the nation’s central bank reportedly dubbed the comments pessimistic.
According to the Xinhua news agency, Henrique Meirelles, president of Brazil’s central bank, told the congress budget committee the nation is "stronger than ever" despite the global gloom.
He added that the domestic market is growing and more than two million jobs were created by October, while industrial production grew by 6.8 per cent in September.
The Brazilian foreign minister today (November 28th) flew out to Qatar to participate in the United Nations (UN) organised International Conference on Financing for Development, according to the Brazil Arab News Agency.
Celso Amorim will meet with his counterparts from 150 countries to take part in an informal debate called by UN Secretary-General Ban Ki-moon about the global financial crisis.
