Tuesday, 6 March 2012

Brazil economy grows 2.7% in 2011

6 March 2012

The Brazilian economy still booms, despite the global economic slowdown.

Brazil, one of the world's fastest-growing economies, grew by less than expected in 2011.

The Latin American nation's economy grew 2.7% last year, official figures show, less than the 2.8% predicted.

Analysts say Brazil is poised to become the world's sixth-largest economy, rivalling the UK, which grew an estimated 0.8% in 2011.

Brazil is enjoying a boom because of high food and oil prices, which has led to rapid economic growth.

In the fourth quarter of last year, Brazil's economy grew by 0.3% from the previous quarter, according to Instituto Brasileiro de Geografia de Estatistica.

Brazilian President Dilma Rousseff has attributed the slowdown in growth last year mainly to the weak global economic situation and the need to fight rising inflation.

The Brazilian economy was worth $2.09tn, compared with the UK's $2.25tn total output in 2010, in current US dollars, according to the International Monetary Fund.

According to the Centre for Economics and Business Research, Brazil has already overtaken the UK as the world's sixth-largest economy.

Brazil, the largest Latin American economy and one of the so-called Bric nations together with Russia, India and China, has seen its economy soar in recent years, with growth far outpacing the US and western Europe, but sending inflation higher.

The currency, the real, fell 11% against the US dollar last year.

That is after two years of huge gains - up 5% in 2010 and 34% in 2009. The currency is worth more than double what it was 10 years ago.

With substantial oil and gas reserves continuing to be discovered off Brazil's coast in recent years, the country is now the world's ninth largest oil producer, and the government wishes to ultimately enter the top five.


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