Brazil's Kandir sees '98 growth above expectations
Reuters, Tuesday, March 17, 1998 at 11:36
CARTAGENA, Colombia, March 17 (Reuters) - Brazilian
Planning Minister Antonio Kandir said on Tuesday that Brazil's
economy will grow more than two percent this year, adding that
forecasts under one percent are incorrect.
Kandir told Reuters he saw no reason for further public
spending cuts at this point, and expected Brazilian interest
rates to contine dropping as fallout from the Asian crisis
eases.
"I am absolutely convinced that the worst is over and it is
very unlikely that there will be any direct contagion from Asia
in Brazil," he said in an interview during the annual meeting
of the Inter-American Development Bank.
The IADB has forecast Brazilian growth at under one percent
for this year.
"No, we don't agree with that. It is more likely that
growth will be somewhat above 2 percent this year," he said.
International Monetary Fund economists said they do expect
the Brazilian economy to speed up later this year.
Brazil's international reserves, which declined in 1997 as
the government scrambled to prop up the real, will rise to
close to $60 billion by year-end, Kandir said.
Kandir reiterated that Brazil will maintain its exchange
rate policy of gradual depreciation of the real, and there will
be no sudden devaluations.
"President Cardoso has made it quite clear he will not
change the exchange rate policy during his current term nor in
a second term if he is re-elected," Kandir said.
Copyright 1998, Reuters News Service |
