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Brazilian Government sees Economy expanding through 2014

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Sao Paulo, Feb. 14 (IANS/EFE):Latin America’s largest economy will grow 4.5 percent this year, 5.5 percent next year and 6 percent in 2014, Brazil’s Finance Ministry said Monday.

Brazil’s gross domestic product is expected to have grown 3.2 percent in 2011, the ministry said in a preliminary estimate based on January-September data.

The government’s official figure on last year’s GDP is expected on March 6.

“2011 was an important year for consolidating the long-term growth trajectory in an international environment of significant slowdown,” the ministry said in a report that forecasts an average annual GDP expansion of 4.8 percent over the next three years, up from 4.6 percent in 2009-2011.

“After the 2011 adjustment, the Brazilian economy will accelerate. Thanks to investment in both the private and public sectors, average GDP expansion through 2014 is expected to be higher than in the previous four years,” the report says.

Investment growth has exceeded GDP growth every year since 2004, with the exception of 2009, when Brazil experienced a brief but severe recession triggered by the global financial crisis, the Finance Ministry said.

The document forecasts a 10.8 percent increase in investment this year, partly due to the extensive infrastructure projects Brazil is carrying out to prepare for the 2014 World Cup.

Most of the 33 billion reais ($19.24 billion) to be spent on the World Cup will go toward improving transportation, the ministry said.

According to the report, Brazil’s inflation rate will rise to 4.7 percent in 2013, citing central bank calculations.

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