AFPM '12: Brazil may grow less than gov projections in 2012

03 April 2012 02:43  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Brazil’s economy may grow less than what government projections indicate, a market participant said on Monday, estimating growth this year will be flat with 2011, when the Brazilian economy grew at 2.7%.

The Brazilian government is projecting Brazil’s gross domestic product (GDP) will grow by 4.0-4.5% in 2012.

Brazil had a slow start in the first quarter and it is unlikely that the economy will expand by 4.5%, the source said on the sidelines of the International Petrochemical Conference (IPC).

This level of growth may not happen until 2013, the source predicted, adding that infrastructure investment in Brazil will increase next year as the country prepares to host the 2014 football World Cup and the summer Olympic games two years later.

The two events are expected to accelerate building activity in Brazil, increasing demand for a number of chemicals in the next four years.

Brazil is expected to invest heavily in the construction and remodelling of several stadiums, airports and roads in preparation for
the tournaments.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC lasts through Tuesday.

By: William Lemos
+1 713 525 2653

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