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Brazil GDP rises by 3.3%
September 2, 2013, 9:29 am


Brazil’s agriculture industry grew by 3.9 per cent in the second quarter [AP]

Data from the Brazilian Institute of Geography and Statistics (IBGE) reveals the Latin American nation’s economy grew 3.3 per cent year-on-year in the second quarter of 2013.

Brazil’s gross domestic product (GDP) also grew by 1.5 per cent in the quarter from the previous one, while investments rose by 3.6 per cent in the second quarter.

The farming sector fared best, growing 3.9 per cent, followed by the manufacturing sector which expanded two per cent and the service sector by 0.8 per cent.

Brazil recently revised its GPD growth forecast for 2013 from four per cent to 2.5 per cent.

“The reduction of inflation and the resumption of growth, all this is beginning to dissipate the grey clouds that had gathered over our country,” Finance Minister Guido Mantega said in Sao Paolo.

Brazil has set a target of four per cent growth in gross domestic product (GDP) next year, although the forecast depends heavily on conditions in the European Union and United States.

Earlier last week, President Dilma Rousseff said Brazil can deal with the surging dollar due to its high forex reserves, currently amounting to $372 billion.

To aid the embattled national currency, the real, Brazil’s central bank has announced that it will infuse $60 billion worth of cash and insurance to the foreign-exchange market by the end of 2013.

The real fell 9.1 per cent against the US dollar in July.

Currencies in emerging markets around the world have taken a hit on indications from the US Federal Reserve that it might end its $85 billion-a-month stimulus programme.

Source: Agencies