Brasília – This Thursday (3rd), the Brazilian minister of Finance, Guido Mantega, stated that the 0.7% growth in the Gross Domestic Product (GDP) in the fourth quarter compared with the third quarter indicates that the economy is not overheating. "We grew by 0.7% in the fourth quarter, with negative public spending at 0.3%. That goes to show that the economy is not overheating and that savings in 2011 will grow more than in 2010," said the minister.
Last year, the GDP grew by 7.5% compared with 2009, informed the Brazilian Institute of Geography and Statistics (IBGE). "[The] 7.5% [growth rate] is too high, but it was an exceptional moment due to the crisis, now we are already at a 5% to 5.5% range," added Mantega.
According to the minister, the result in 2010 places Brazil among the five countries that grew the most during the period, after China, India, Argentina and Turkey. "Considering the GDP at parity price and purchasing power parity, according to yet unofficial calculations – the official ones should be made by the IMF [International Monetary Fund] or the World Bank -, we have posted a GDP of 3.6 trillion reals (US$ 2.1 trillion), which places us in the seventh position, above France and the United Kingdom," he said at a press conference during which he commented on the data disclosed by the IBGE.
President Dilma Rousseff praised the 7.5% GDP growth and stated that in coming years, she expects rates to range from 4.5% to 5%, which she deems reasonable and sustainable.
"I think we should hail the 7.5% rate, but from now on we will seek fairly reasonable rates, of 4.5% to 5%, ones that are sustainable and permanent. Of course, we expect the world not to create turbulence or small waves," she said. To Dilma, the Brazilian capacity for growth is explained due to the investment that has been made. The president also underscored the importance of inflation control to ensure the growth of the country.
"Whenever we invest, we create conditions for the country to expand. We are now implementing our fiscal consolidation, because inflation control is one of the most important matters to us now. We will not allow inflation to go out of control. We will keep one eye on stability and the other on increasing investment."
*Translated by Gabriel Pomerancblum
