Saturday, February 25, 2006


Brazilian economy grew 2.3% in 2005

IBGE, the official Brazilian statistics Institute, announced today that Brazilian economy grew 2.3% in 2005; in 2004, the growth had been 4.9%.
In 2005, the average growth of the world economy was 4.6%; in Latin American, only Haiti grew less than Brazil, with an expansion of 1.5%.

In 2005, when consumer price indexes closed around the 6% mark, and general indexes closed around 3% (the lowest in decades), the average basic interest rate was 19.5%. Also the dollar, which reached almost R$ 4 in 2002, finished 2005 around R$ 2.20. Tax burden, according to specialists, also increased another bit.

High interest rates, unfavorable currency value, more taxes, less government spendings; all these factors contributed to less investments, less foreigner trading, less spendings.
The number didn't surprise the markets.

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