Brazil announces $60bn stimulus package
16.08.2012,
13:04
Brazil's government has unveiled the first phase of a major economic stimulus package designed to boost growth in the flagging economy, BBC reports.
YEREVAN, August 16. /ARKA/. Brazil's government has unveiled the first phase of a major economic stimulus package designed to boost growth in the flagging economy, BBC reports.
More than $60bn (£38bn) will be invested in the country's roads and railways over the next 25 years, with more than half in the next five years.
This includes 8,000 kilometres of new roads and 8,000kms of railways.
Further announcements involving investment in ports and airports are expected in the coming weeks.
Growth in Brazil is predicted to be less than 2% this year, the weakest annual performance since 2009 and a sharp slowdown from an impressive 7.5% rise in 2010.
The government's recent measures, such as the recent devaluation of the currency, the real, and the progressive reduction in interest rates, have so far failed to stimulate growth.
"The measures unveiled by the Brazilian government this afternoon are good news insofar as they will help tackle some of the supply-side problems that are holding the economy back," said Neil Shearing at Capital Economics.
But he said the benefits would not be felt fully for a number of years. —0--
