Brazil’s economy surprisingly serrated up a growth rate of 0.7% in the last quarter of last year.
Finance Minister Guido Mantega said to reporters: “It was a surprise even for the government.”
The economy shrivelled in the third quarter of 2013. Many economists had anticipated it to shrink again and fall into downturn.
Over the entire year it has grown by 2.3%, facilitated by strong consumer expenditure and investment.
But growth in the sector of agriculture was flat and industry shrank by 0.2% in the last quarter.
The figures bargain some support for President Dilma Rousseff as she stabs to woo financiers beforehand she stands for re-election in October.
The government has also promised to cut $18.5bn (£11.1bn) in public spending to bring its deficit under control.
Inflation
The Central Bank put interest rates up on Wednesday to 10.75% – the equivalent level they were at when President Rousseff took office in 2011.
Inflation has fallen back to 5.6% after hit the highest point at 6.7% in June.
The wounding of interest rates initial on in her term assisted growth but produced inflation and a fall in the currency. Since 2011 the Brazilian currency, the real, has tumbled from 1.70 to the dollar to 2.35.
The deterioration in Brazil’s affluences, the falloff in public services, on-going corruption and what is seen as unnecessary spending on the World Cup has brought campaigners out on to the highways over the last year.
The economy galloped a commodity boom under former President Luiz Inacio Lula da Silva, rising on average 4%. In 2010, growth peaked at over 7%.
But it became over in need of on the Chinese market with exports to China growing at jaggedly four times the rate of total exports between 2000 and 2010.
Chinese imports of soy, for instance, represent over 40% of Brazil’s exports.
As Chinese petition fell away, Brazilian growth stammered, considered down by poor infrastructure, high consumer debt and drooping business self-assurance.
Source: BBC News
Image Source: fundweb.co.uk
