Economy

CNI lowers GDP growth forecast

CNI
11/04/2014 15:52
CNI lowers GDP growth forecast Imagem: Deposit Photos Visualizações: 1007 (0) (0) (0) (0)

 

The Brazilian Confederation of Industry (CNI) reviewed in relation to forecasts made in December last year, most leading indicators of the economy in 2014. Situational Report The quarterly report, released on Friday(11), projected GDP growth Gross Domestic Product (GDP) of 1.8% this year, against 2.1% projected earlier, and 1.7% of the industry, compared to the previous estimate of 2%. The projection for the increase in investments was reduced by half, 5% in December to 2.5 %.
The long cycle of rising interest rates, with the adoption of "a policy of monetary tightening intense" by the Central Bank; the reversal of certain tax exemptions, as an excise tax for automobiles; the likely intensification of production cost, due primarily to the increased cost of electricity (the drought) and imported (by devaluation) inputs, are some of the factors listed by the CNI to provide a timid economic activity this year. The Situational Report of the first quarter highlights the backdrop of economic uncertainty reduces confidence of the entrepreneur and thus the willingness to invest", critical variable to accelerate growth in the short term".
CNI notes that 2014 began with good results, as the growth of industrial production in the first quarter , partly attributed to the higher number of working days in February with the Carnival in March, but considers that this rate should not be kept in the rest the year. "The year started with some positive results, such as industrial production growth also, however , there are clear warning signs in the economy: Inflation shows signs of acceleration and the trade balance in 12 months is reduced markedly,"the diagnosed Tell Conjuntural. The manufacturing industry provides the Report, is expected to grow 1.5%, against 1.9% recorded in 2013.

The Brazilian Confederation of Industry (CNI) reviewed in relation to forecasts made in December last year, most leading indicators of the economy in 2014. Situational Report The quarterly report, released on Friday(11), projected GDP growth Gross Domestic Product (GDP) of 1.8% this year, against 2.1% projected earlier, and 1.7% of the industry, compared to the previous estimate of 2%. The projection for the increase in investments was reduced by half, 5% in December to 2.5 %.


The long cycle of rising interest rates, with the adoption of "a policy of monetary tightening intense" by the Central Bank; the reversal of certain tax exemptions, as an excise tax for automobiles; the likely intensification of production cost, due primarily to the increased cost of electricity (the drought) and imported (by devaluation) inputs, are some of the factors listed by the CNI to provide a timid economic activity this year. The Situational Report of the first quarter highlights the backdrop of economic uncertainty reduces confidence of the entrepreneur and thus the willingness to invest", critical variable to accelerate growth in the short term".

 

CNI notes that 2014 began with good results, as the growth of industrial production in the first quarter , partly attributed to the higher number of working days in February with the Carnival in March, but considers that this rate should not be kept in the rest the year. "The year started with some positive results, such as industrial production growth also, however , there are clear warning signs in the economy: Inflation shows signs of acceleration and the trade balance in 12 months is reduced markedly,"the diagnosed Tell Conjuntural. The manufacturing industry provides the Report, is expected to grow 1.5%, against 1.9% recorded in 2013.

 

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