Thursday, June 21, 2012

"E uma piada" ('It's a joke"), Mantega said on projection from Credit Suisse to Brazilian GDP

Swiss financial institution reduces the estimate to 1.5% growth in the country in 2012 and revolt Brazilian authorities


A team of economists at Credit Suisse dropped 2% to just 1.5% projected growth for the Brazilian economy in 2012. In the report justifying the most pessimistic expectations, economists emphasize the drastic reduction in the pace of investment, which would leave 4.7% in 2011 to 0.3% in 2012 and deceleration of household consumption from 4.1% to 3 3%.
The projections of the swiss financial institution, one of the largest investment banks in the world, revolted brazilian authorities. In rio to attend the rio +20, the finance minister, guido mantega, dismissed the calculation.
"It's a joke. It will be much more than that," Mantega said on the afternoon of Wednesday, 20, in brief statement to reporters outside a hotel in Barra, where she is staying delegation. Last month, in Senate hearing, he presented a new estimate of the Ministry for the performance this year: 4%, half a percentage point below the previous one.
In less favorable trends for the economy from the perspective of demand, Credit Suisse also listed components decreases in supply. "From the perspective of supply, our forecast assumes retraction of agricultural products 1.8% and slight expansion of the industrial GDP of 0.6%. The growth of services would be 2% higher than GDP, due to the further expansion of its least sensitive to demand, "says the report.
The Minister of Development, Industry and Foreign Trade, Fernando Pimentel, which also includes the presidential motorcade on Rio +20, tried to temporize, "I think the view that the Europeans have to be necessarily negative is influenced by the climate there.'s Situation financial market in Europe is very bad, "he said.
For him, the Brazilians have reason to be optimistic considering the dynamism of the economy of the country Pimentel praised the measures taken by the Ministry of Finance and the Central Bank to boost economic growth in 2012 and said they were unlocking the investment for the second half . "I do not follow this pessimism at Credit Suisse. I think we'll outgrow it," he said. But preferred not to risk any prognosis.
The financial market is not as optimistic as the government. On Monday, the Central Bank released the report Focus, in which banks reduced for the sixth consecutive week, the bet of economic growth for 2012. According to the survey, the estimates dropped from 2.53% to 2.30%. Four weeks ago, was projected growth of 3.09% this year.
Today's report from Credit Suisse pulled further down the trend. According to the document, simulations by the institution "suggests that GDP growth of 2% in 2012 has become less likely because it would require a very significant resumption of activity in the second half of 2012."
"The reduction in our forecast for GDP growth in the second quarter, the overall uncertainty still high and the low probability that we attach to a very significant economic expansion in coming quarters justify a reduction in our forecast for GDP growth in 2012 from 2% to 1.5% ", say the economists.


Source: Economia&Negocios



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