Good times: domestic consumption rises Brazilian GDP

Published on Jormal Folha de Sao Paulo in 8/10/2010. 


The Brazilian economy should grow 6.5% this year, according to a forecast of the Finance Ministry. The Brazilian Economy in Perspective report indicates that the expansion in 2010 will be driven by investment and household consumption, in addition to accelerating the implementation of the PAC (Growth Acceleration Program).
Household consumption should end the year high of 6.6%, and investment must represent an advance of 20.4%. Government consumption must be discharged more modest 2.8%, according to the report.
According to the report, the country resumed the cycle of sustainable growth, up 2.7% in the first quarter and 11.4% in annualized terms. Even with the strong expansion in the period, the Treasury points out that the end of the fiscal and monetary stimulus will cause the GDP (Gross Domestic Product) continues to grow in the second half, but no signs of overheating.
The domestic demand was responsible for the rapid recovery of the economy after the global crisis, with an advance of 9.1%, more than offsetting the 2.6% drop in external demand. The growth of income and employment are appointed by the Ministry of Finance as responsible for the gains.
INFLATION
The government maintained its forecast for the IPCA (Consumer Price Index Large) emem 5.2% this year. The index is above the central target for the period from 4.5%. In July, inflation was found in 0.01%, after recording stable in June.
Over the past 12 months, the IPCA accumulated a high of 4.6%, almost in the center of the target (4.5%) determined by the federal government. For the year, the index recorded an increase of 3.1%.
Food had a deflation of 0.76%, compared to negative growth of 0.90% last month. Non-food products were registered slowdown and inflation of 0.24% against 0.27% in June.
Figures are from the bimonthly report, for June and July 2010, prepared by experts from the Ministry of Finance.