BRASILIA--Brazil's economy should grow about 2.4% this year after growth of 0.9% in 2012, the country's National Confederation of Industries, or CNI, said Wednesday.
The forecast is up from a growth estimate of 2% in the group's projections released in June. The group also revised upward the projected growth for the industrial sector, to 1.4% from 1% previously.
CNI said that although household consumption powered economic growth in 2012, investments should have more positive impact on Brazil's growth in 2013. "Sustainable growth comes from investment," said CNI chief economist Flavio Castelo- Branco.
"When investment grows more than consumption, we have a favorable situation."
The group expects that investment will rise 8% by the end of 2013, corresponding to 1.5 percentage points in gross- national-product growth.
Mr. Castelo-Branco said, however, that the country's investment rate will still likely remain below 20% of GDP this year, and this will place Brazil behind many other developing countries.
Also Wednesday, the CNI report warned that the government's budget surplus will likely come in at 1.7% of GDP, far below a government target of a primary surplus of 2.3% of GDP.
Brazilian government officials, however, have argued that large-scale highway, airport, port and other concession auctions scheduled before the end of this year will help boost revenue and facilitate compliance with surplus targets.
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The forecast is up from a growth estimate of 2% in the group's projections released in June. The group also revised upward the projected growth for the industrial sector, to 1.4% from 1% previously.
CNI said that although household consumption powered economic growth in 2012, investments should have more positive impact on Brazil's growth in 2013. "Sustainable growth comes from investment," said CNI chief economist Flavio Castelo- Branco.
"When investment grows more than consumption, we have a favorable situation."
The group expects that investment will rise 8% by the end of 2013, corresponding to 1.5 percentage points in gross- national-product growth.
Mr. Castelo-Branco said, however, that the country's investment rate will still likely remain below 20% of GDP this year, and this will place Brazil behind many other developing countries.
Also Wednesday, the CNI report warned that the government's budget surplus will likely come in at 1.7% of GDP, far below a government target of a primary surplus of 2.3% of GDP.
Brazilian government officials, however, have argued that large-scale highway, airport, port and other concession auctions scheduled before the end of this year will help boost revenue and facilitate compliance with surplus targets.
nasdaq.com
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