Brazilian economic growth slows, despite rapid growth in the first quarter
The Brazilian economy created just 212,952 registered jobs in the month of June, which was below the median prediction of 279,000 jobs, based on a series of three forecasts issued by economists. In May, 298,041 registered jobs were created and during the first quarter of 2010, Brazil’s economic growth was the fastest for 15 years, which contrasts significantly with the latest figures. Registered jobs in Brazil provide workers with numerous benefits, including insurance, long term care annuities, bonuses and retirement packages from the government.
Meanwhile, governmental tax figures for June amassed to 61.5 billion reais, which is an equivalent of 35 billion US dollars, also below the prediction of 64 billion reais issued by 11 economists on a Bloomberg study. Latin America analyst Diego Donaldio, who monitors BNP Paribas in Sao Paulo was concerned that these results could mean the government may not deliver on its fiscal results later in 2010. Without a reduction in government spending, it is feared there will be an interest rise from the central bank as well.
Brazil’s economic growth is expected to relieve itself during the third quarter of the year after the government made a decision to withdraw a large stimulus bill. Guide Mantegra, the Finance Minister has announced. In May, the economic activity index of the central bank index fell to 139.55 points, lower than April’s 139.58 points. Carlos Lupi, the Labour Minister announced that during the first half of 2010 490,028 new service jobs had been created in the country and on the previous day he also announced the creation of around 1.5 million new formal jobs.
Industrial production and retail estimates also missed their estimates, which initiated fears of the potential for an economic slowdown in the near future. In the last couple of years, as many other countries such as the US, UK and Germany have encountered a deep, long-lasting recession, Brazil has continued to enjoy strong economic growth as it emerges as one of the world’s largest economies of the 21st century.
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