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Brave New Stimulus Plan For Brazil

Live And Invest Overseas by Live And Invest Overseas
Aug 15, 2012
in news
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Brave New Stimulus Plan For Brazil
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Back in May of this year Brazil’s president Dilma Rousseff invited 50 of Brazil’s leading businessmen to the capital Brasilia to ask their opinion about what was needed to stimulate a slowing economy.

This year it’s predicted that Brazil’s economy will grow by only 2%, the lowest amount since 2009, and a big reduction when compared to growth of 7.5% in 2010.

Today (August 15), Rousseff, together with the 50 businessmen, will launch the first in a series of measures to boost the economy over the next five years. The total investment is expected to be US$50 billion coming mainly from the privatization of Brazil’s roads, railways, airports, and ports.

The first part of the plan, to be announced today includes privatization of about 8,500 miles of railways and roads. More incentives for industry are expected to follow soon after.

Brazil’s recent rapid growth propelled it to the place of sixth largest economy in the world. However, the country’s policy of domestic production of almost all commodities, increased wealth of Brazil’s poor, and credit growth has not been enough to sustain the economy in the face of global economic problems, rising debt rates, and reduced demand for domestic products.

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