Brazilian economy expanded 1.35% in 2012 and 4% is projected for this year
2013-02-22 16:54:16
While the central bank's growth estimate is higher than the market prediction, it still falls short of the government's 4% growth projection announced at the beginning of last year.
The country's economic activity in December rose 0.26% compared with the previous month, lower than November's 0.57% over October, indicating an economic slowdown towards the end of last year, according to the bank.
In the last quarter of 2012 the economy expanded 0.62% which was lower than the encouraging 1.12% of the third quarter.
In 2012, the Brazilian government announced a whole barrage of measures to stimulate growth, including cutting the central bank's overnight rate to a record-low 7.25%, reducing taxes for industries, increasing credits and lowering prices and a drastic reduction in electricity rates both for industry and homes.
For 2013, the government forecasts a 4% growth, while the financial market predicts a lower 3.08%.
In 2010 (electoral year) the Brazilian economy expanded at Chinese pace, 7.5% and in 2011 it was down to 2.7%.