Agência Brasil
Rio – Brazilian economic growth this year is guaranteed and will be over 4%, says minister of Planning, Budget and Management, Guido Mantega, speaking at a forum on XX century Brazilian social problems.
The minister said he was forecasting industrial sector growth of 5% or 6%, with installed capacity use up while production costs were down. That, he said, would mean more productivity which will translate into bigger profit margins for businesses. All of which led the minister to say that he saw no reason for price increases.
"Businesses are in a comfortable position. There is no reason for them to raise prices," declared Mantega, adding that inflation is under control and the country will continue to grow even if interest rates rise.
The minister also said that the government intends to continue supporting the export sector through incentives. He said there was no supply problem and that both foreign and domestic demand can be taken care of.
