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Study: Brazil economy on the mend
March 14, 2013, 10:38 am

President Dilma Rouseff has taken a number of measures to boost the economy [Getty Images]

President Dilma Rouseff has taken a number of measures to boost the economy [Getty Images]

Despite a weak economic show last year, Brazil’s economy is rebounding, according to a new research report.

The Global Business Travel Association (GBTA) has released its latest GBTA BTI Outlook report on Brazil as part of its semi-annual series.

The report indicates that strengthening domestic and global economies will place Brazil on a strong growth path in 2013, with the index increasing by over 40 points.

Brazilian total business travel spending is expected to grow 14.3 per cent in 2013 to $34.5 billion.

While domestic business travel spending has grown 8.3 per cent a year over the last 12 years, and is forecast to grow 12.9 per cent to $27 billion in 2013.

International outbound travel spending is on target to expand by 20.2 per cent in 2013, reaching $7.1 billion

Brazil currently ranks 8th in the business travel global rankings, and is on track to surpass Italy, France and the UK over the next two years.

Thew country’s business travel spending has continued to grow at an impressive rate, and has nearly tripled since 2000.

From an estimated $11 billion in 2000 travel spend expanded at an average rate of 8 per cent per year to over $30 billion in 2012.

Wellington Costa, President of GBTA Brazil commented: “Brazil has shown remarkable economic resilience and we see this reflected in the latest GBTA business travel data. Although business travel spending slowed toward the end of 2012, growth rates for both  travel spend and the economy are now rising again.

“The major challenge facing the Brazilian business travel market is whether the country’s travel infrastructure and supply can keep pace with its growing demand.”

After posting a weak 0.9 per cent GDP in 2012, Brazil’s President Dilma Rousseff has implemented a series of measures to boost growth.

Rousseff announced the elimination of the 9.25 per cent PIS/Cofins taxes on staple foods on March 9.

The Brazilian central bank had eased reserve requirements on large banks in December last year.

Source: Agencies