Brazil's economy grew 0.75 per cent in June
18 Aug 2012
Brazil's economy grew 0.75 per cent in June relative to the previous month as tax breaks spurred growth, according to the central bank.
The uptick in the bank's economic activity index was the biggest since March 2011, when it was up 1.47 per cent, the bank said yesterday.
The central bank has lowered its 2012 growth forecast for the sixth-largest economy in the world from 4.5 per cent to 3 per cent due to the depressed global economy. At the same time, the bank said it was a positive sign the economy had grown 0.99 per cent in June as against the same month in 2011.
According to the bank, the June upsurge in economic activity came as a result of a slew of measures adopted by president Dilma Rousseff's administration, that stimulated consumer spending by lowering taxes on automobiles, furniture, home appliances and other products.
In a bid to further stimulate growth and investment, the government this week announced a $65.5 billion plan to improve Brazil's infrastructure and spur economic growth
The plan, involves awarding concessions to private firms for the construction of nearly 7,500 km of highways and 10,000 km of railways, and is aimed at improving links between productive areas and the country's seaports and airports.
On Thursday, the finance ministry gave 17 of the country's 27 states additional scope for taking on debt and the decision would give states access to an additional $21.1 billion in state loans.
The funds would need to go towards infrastructure, sanitation systems, urban transport and the environment and, according to finance minister Guido Mantega, would provide a significant boost to environment.
