Brazil’s Growth Surprises at 0.7 Percent

Brazil’s economy unexpectedly notched up a growth rate of 0.7% in the last quarter of last year.

Finance Minister Guido Mantega told reporters: “It was a surprise even for the government.”

The economy shrank in the third quarter of 2013. Many economists had expected it to shrink again and fall into recession.

Over the whole year it has grown by 2.3%, helped by strong consumer spending and investment.

But growth in agriculture was flat and industry shrank by 0.2% in the last quarter.

The figures offer some support for President Dilma Rousseff as she tries to woo investors before she stands for re-election in October.

The fact that there was a 6.3% jump in investment will help her persuade businesses that confidence is returning.

The government has also promised to cut $18.5bn (£11.1bn) in public spending to bring its deficit under control.

via BBC

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