Clipping of news on Brazilian Culture, Law and Citizenship
28/02/2014
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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The finance minister , Guido Mantega Photo: André Coelho - 01/08/2013 / O Globo
BRASILIA - The finance minister , Guido Mantega , said on Thursday that the government will not take new measures to stimulate the economy in 2014 . According to him , the actions that were taken in previous years are still having an effect on the activity .
- There will be implementing new stimulus in 2014 . Have we stopped doing that in 2013 . Stimuli , 2011 and 2012 are still working. The measures do not take effect immediately. What has been done will be harvested later.
The finance minister said that while the central bank has raised the benchmark interest rate , the Selic rate to 10.75% per annum , the same as the beginning of the Rousseff administration , it can have positive effects on the activity as it increases the confidence of investors and consumers :
- The monetary tightening has a beneficial aspect that is to control inflation or even reduce it , which creates favorable conditions for growth because it increases confidence . By taking measures to ensure that inflation will be reduced , this is good .
The minister also recalled that in 2013 , bids that involve investments in 2014 were made . He cited , for example , the exploitation of the field Libra subsalt , which will generate investments by 2017 . In the case of roads , said Mantega , the result will be faster , even in the next six months.
- Auctions we did, electric power , oil and all, will implement U.S. $ 80 billion in investments in the coming years - said .
Mantega celebrated the performance of the economy in 2013 . The Gross Domestic Product ( GDP sum of goods and services produced in the country ) rose 2.3 % compared to 2012 .
- The growth indicates that the Brazilian economy is on a path of gradual acceleration over the previous year. Trend that will continue in 2014 . It was a quality growth because it was pulled by investments .
- It was very satisfying . The projections were smaller . I was satisfied with this data - said the minister , for the fourth quarter.
For the year , however , the minister said the government was working with a projected growth of 2.5 % :
- It was within expectations
The minister declined to make projections for investments and the performance of economic activity this year . He noted that in the first half , there was more investment due to lower interest rates from BNDES for the purchase of capital goods.
- Investors took advantage of the opportunity cost of lower and there was this concentration ( investment in the first half ) - said Mantega , who noted that there was great demand for investment last year.
- ( The year ) 2014 begins with the new budget , with sufficient resources to fund this increased investment - said the minister , who noted that , although it has disbursed a large amount of resources , decreased availability of financing for investments at the end of the second semester.
The good result of 2013 was mainly due to the agricultural sector , which grew by 7 % . The manufacturing industry rose by only 1.3 % and the services sector , 2 % . Investments were also positive performance and increased 6.3 % , highlighting the domestic production of machinery and equipment . Thus , the investment rate ended 2013 at 18.4 % of GDP , up from 18.1% in 2012.
On market forecasts , Mantega said:
- Analyses of the fourth quarter were all negative. Analysts have a lot of work this weekend to review their projections and they are positive . In 2014 we will have more favorable conditions for the Brazilian economy - the minister said .
The minister pointed out that last year , there was growth of the consumer market, but below the growth of investments . And reminded that the Brazilian industry has acquired more machinery and equipment and increased productivity will be reflected in the results of the economy in 2014 .
- In contrast , the external sector has not contributed to the growth . We had a larger increase in imports , 8.4% , and lower export growth of 2.5 % . This means that there was external leak of our growth - noted the Minister .
2013 tough for international economics
Mantega considered that this result reflects the external sector year 2013 " still hard for the international economy ."
- It was a year of low growth of the international economy - the minister , adding that international trade has grown just said .
He stressed, however , that despite the challenges facing the Brazilian economy , the country generated more than 1 million jobs in 2013 . The minister recalled that last year , the Federal Reserve ( Fed , the U.S. central bank ) announced the start of the reduction of the stimulus for the U.S. economy and, thus , created turbulence , especially for emerging countries .
- Once this turbulence , which is transient , that is accommodation market , surpassed the prospects for 2014 are better than 2013, at least from this point of view - Mantega said .
- The economy , therefore, had a satisfactory performance . We , in this period , we maintained our solid fundamentals and are therefore given the conditions in which this path of moderate growth to continue in 2014 - the minister added .
Mantega also said the fact that the share of industry in the economy to be the lowest since 2000 . The share of this sector in GDP was 24.9 % . In 2012 it was 26 % .
- The industry , although it is getting much support from the government , has grown slightly below what we would like . But this situation tends to improve in 2014 .
The minister also said that fiscal policy will also contribute to the growth of the economy in 2014 is greater :
- We took a budget program that enhances growth , limited items of expenditure and creates favorable conditions to increase confidence , so that inflation is under control and that growth will be higher in 2014 .
The minister also said that growth in 2014 may receive aid from household consumption . That's because there is a drop in delinquency in the country , which encourages the financial sector to increase lending for consumption and not just for the productive sector .
- There is an important fact that is the reduction of delinquency . We are in a very satisfactory level . With this more favorable environment for 2014 , we can release one of the largest consumer credit .
BC says that rate in 2013 confirms recovery
The Central Bank issued a note which states that GDP growth released on Thursday by the IBGE confirmed the " gradual recovery in economic activity since the second half of 2012 ."
"Changes in the composition of demand and supply strengthen the prospects for continued growth in this current cycle and in the coming years , a process that tends to support the solid fundamentals of the Brazilian economy , the robustness of the internal market and the intensification environment global activity, " the statement said .
Source : The Globe - Online
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This article was translated by an automatic translation system, and was therefore not reviewed by people.