Brazil economy grows at fastest pace in 15 months
–> Brazil’s economic activity climbed in June at its fastest pace since March 2011, suggesting that the world’s sixth-largest economy has bottomed out after a yearlong flurry of government stimulus. While a rebound had been expected by authorities and market analysts, Brazil’s anaemic growth had been missing forecasts for months. Not only did various stimulus measures take many months to take effect, manufacturers cut back investments to cope with lower foreign demand and high costs at home.
Now, some economists say the central bank may decide it doesn’t need to cut interest rates much deeper than the current lows, even though its president, Alexandre Tombini, s ees prices under control in coming quarters. The Brazilian central bank’s IBC-Br economic activity index rose 0.75 percent in June from May in seasonally adjusted terms, only slightly above the median forecast in a Reuters survey, the bank said on Friday.
The index, a gauge of activity in the farming, manufacturing and services sectors, rose 0.99 percent from the same period a year before, the bank added. Economic activity expanded 0.38 percent between April and June compared w ith t he prior three months, down from a 0.63 percent gain in the first three months of the year.Copyright Reuters, 2012
Article source: http://www.brecorder.com/business-a-economy/189/1229130/