16 February 2012

BRASIL : $32 Billion Lopped From 2012 Budget.


      Brasil will reduce its 2012 budget by $32 billion...with cuts to defense and health care... which may allow interest rates to fall.
     It projects an optimistic 4.5% GDP growth...along with a 4.7% rise in inflation.
     Brasil's GDP only grew by 2.7% in 2011...the 2nd slowest rate since 2003.
     Some experts predict a more realistic...3.5% growth rate...for 2012. 
     “With lower rates, the country will grow more,” said Finance Minister Mantega (foto) said at a press conference. “It is a big cut that allows us to meet the fiscal target with ease.”