Brasília – This Tuesday (22nd), the Brazilian minister of Development, Industry and Foreign Trade, Fernando Pimentel, said the country’s Gross Domestic Product (GDP) will grow above the world average in 2012, but will surely be lower than the government’s current forecast of 4.5%. Nevertheless, he stressed that although Brazil is prepared to face the international crisis, the country is not immune to it, and will therefore suffer consequences in its economy and industry.
“We were able to stand against the crisis with boldness. As a result, in 2012, Brazil will be able to have its GDP grow at a higher rate than the international average, which should be in the 2.5%-to-3% range. Still, our 4.5% forecast will probably be revised down. We will discuss that with [Finance] minister [Guido] Mantega,” said Pimentel during the seminar Challenges of the Brazilian Industry in the Face of International Competitiveness, at the Senate.
According to Pimentel, investment in infrastructure and industry support measures will ensure a growth rate above the world average. To that end, he added, the investment-to-GDP ratio will have to exceed the average of 19% to 20% and reach 24% or 25%. “Brazil is prepared to face the crisis, but that doesn’t mean we are immune. It has an impact on our economic fabric and our industry, as shown by industrial indexes. We need to pay attention to investment volume and investment quality, because the keyword around the entire world is innovation,” he added.
*Translated by Gabriel Pomerancblum
