São Paulo – The economy of Brazil should return to growth in the first half of next year, according to the Serasa Experian on Economic Perspectives Index. A report on the index disclosed on Tuesday (27) shows that, after a practically stagnant second half, the Gross Domestic Product (GDP) of Brazil should return to growth in early 2012.
The Serasa Experian on Economic Perspectives Index forecasts the condition of five economic variables in six months: economic activity, consumer credit concession, company credit concession, consumer default and company default. With this, the index verifies whether the economy will be expanding, contracting, in crisis or in recovery.
In October, the index was up 0.2% as against the previous month. This was the third growth running. As the index signals what will be happening in six months, it is possible to expect growth in March 2012.
“This result shows that the economy of Brazil should return to growth in the first quarter of 2012, after stagnation throughout the second half of 2011,” said Serasa in press statement.
To Serasa economists, “the current trajectory of lower benchmark interest rates, the adoption of tax breaks and the 14.3% increase in the minimum wage will help in the process for recovery of dynamism of economic activity.”
*Translated by Mark Ament
