Brazilian GDP grows 9 percent in Q1

Wednesday, 09 June 2010 02:31:28 (GMT+3)   |  
The Brazilian federal government Tuesday announced that its first quarter of the Gross Domestic Product (GDP) in 2010 grew 2.7 percent compared to the last quarter of 2009. According to data released Tuesday by the Brazilian Institute of Geography and Statistics (IBGE), national production of goods and services amounted to R$ 826 billion, or US$ 444 billion. These results confirm that the Brazilian economy has recovered from the international financial crisis. The economy achieved its strongest growth in more than 15 years, with 9 percent quarter-on-quarter growth, comparing the first quarter of 2010 with the same period in 2009.

"Until recently, Brazil's economy was only expected to grow slightly in 2010. For the second quarter of 2010 there are already indications of slowdown. The year growth will be high but the rates along the period are decreasing. There was a significant change in economic policy recently, and the State began to drive this growth through new initiatives," said Finance Minister Guido Mantega. He also commented that the country's growth is "well-balanced, with no bubbles."

According to the Minister, the relatively low debt of Brazil, the burgeoning demand for housing, and planned investments in major infrastructure projects worth US$ 450 billion between 2011 and 2014 will build a foundation for the Brazilian economy to reach a level comparable to those of industrialized nations in upcoming years.

"Over the next five years, many emerging countries will be the ones to lead worldwide economic growth, accounting for two thirds of the world economy. Brazil's GDP growth in the next five years will be one of these main drivers," Minister Mantega predicts.

Comparing the first quarter of 2010 to the same period in 2009, Brazil's Industrial sector fared the strongest, with an increase of 14.6 percent.

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