Brazil Reports Q2 2013 GDP Results: Better than Expected
Brazil's Economy Growing in Spite of Adverse Global Economy
Brazil Second to China in BRICS Performance
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Point Roberts, WA, New York, NY - August 31, 2013 (www.investorideas.com newswire) Investorideas.com, a global news source featuring investing ideas and news in leading sectors, reports on the Friday, August 30th conference call discussing Brazil's Q2 2013 GDP results. Finance Minister Guido Mantega reported better than expected GDP growth and presented compelling reasons for investing in infrastructure.
The conference call included a summary report of Q2 2013 GDP results followed by a Q&A.
Finance Minister Guido Mantega reported Brazil's GDP grew by 1.5 % in the second quarter, representing a 6% annualized rate.
Agriculture was the leading sector growing by 3.9 %. Mining grew by 1%, manufacturing 1.7%, civil construction 3.8%, services by 0.8 % and trade by 1.7%.
Discussing the demand side he noted that household consumption grew by 0.3%, spending and consumption of public administration grew by 0.5%and investment/gross fixed capital formation grew by 3.6%.
Exports of goods and services grew by 6.9% in comparison to imports grew by only 0.6%. He said this represented quality growth driven by investment.
Looking ahead he said Brazil is expecting investment growth to continue, stimulated by auctions of concessions.
A major factor is also Brazil's $200Billion (USD) infrastructure program, with auctions slated for the end of 2013 or early 2014.
He closed his commentary prior to the Q&A stating that in regard to Brazil's performance compared to the other BRICS, Brazil was second to China.
He also said, "It is very important that the Brazilian economy is growing gradually, especially in an adverse international economic situation."
In the Q&A session Thierry Ogier from Les Echos asked him about the infrastructure and concessions and how they were key to the future of Brazil's economy.
Finance Minister Guido Mantega said the large infrastructure program will require a large volume of financial resources both Brazilian and foreign. He said they understood this would require attracting investment based on high rates of profitability and they were preparing segments of the program accordingly. The Brazilian government will provide part of the funding and also provide guarantees for elements. The programs are for public services, for which there is currently an extraordinary demand and therefore would result in profitability over a long period of time.
Reported by D. Van Zant, Investorideas.com
About IBGE: The Brazilian Institute of Geography and Statistics (IBGE) is the independent and autonomous agency responsible for statistical, geographic, cartographic, geodetic and environmental information in Brazil.
About SECOM: The Secretariat for Social Communication (SECOM) of the Presidency of the Federative Republic of Brazil is responsible for coordinating the public relations activities for the government of Brazil. For more information on the Federative Republic of Brazil, please visit www.brasil.gov.br. The official social media accounts for the Brazilian State are on Facebook and Twitter at http://www.facebook.com/BrazilGovNews/ and twitter.com/BrazilGovNews.
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