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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (48784)	4/25/2009 3:36:18 AM
From: elmatador	Respond to of 217572

cutting forecasts for economic growth but keeping those for inflation steady, "Analysts ... week after week they lower their estimates for the Brazilian [gross domestic product] growth during the year 2009 and 2010, but they are not reducing accordingly the inflation forecast," Meirelles said in Washington ahead of the weekend's spring meetings of the International Monetary Fund and World Bank. Brazil Meirelles:'Some Question' In Private-Sector Econ Models By Matthew Cowley Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--There may be "some question" in private-sector economists' models for the Brazilian economy, because they have been cutting their forecasts for economic growth but kept those for inflation steady, Brazil's central bank governor, Henrique Meirelles, said Friday. "Analysts ... week after week they lower their estimates for the Brazilian [gross domestic product] growth during the year 2009 and 2010, but they are not reducing accordingly the inflation forecast," Meirelles said in Washington ahead of the weekend's spring meetings of the International Monetary Fund and World Bank. Meirelles said he wanted to draw attention because "there something is intriguing" in the models. "Let's see how that plays out but clearly since we are covering new ground here, people are very careful on both fronts probably," Meirelles told the U.S. Chamber of Commerce. Meirelles said forecasts for the Brazilian economy outside the central bank are still worsening. The IMF's most recent report indicated it expects GDP to contract by 1.3% in 2009. "We think that [non-government forecasts are] probably ... a little bit on the pessimistic side," Meirelles said. Meirelles said, "Brazil will probably be one of the first" countries to get out of this crisis, although the government still has plenty of work to do. He said fiscal stimulus in Brazil so far has been very targeted, and that the government will do what it takes to prevent the country from falling into deep economic trouble. "The priority is not to allow the economy to get into a kind of situation [that] some countries are in now, [because] then it would be more expensive to get out of it," Meirelles said. As things stand, the country will "most likely" emerge stronger than before the crisis, because the government won't have to spend to resolve the problems, he said. The debt-to-GDP ratio "most likely" will "still be below the number when we came in" to the crisis, he said. That's because of "all the buffers that have been built before the crisis," Meirelles said. Brazil was very strict on making sure banks acknowledged risks of securitization before the crisis, he said. The price was a lack of dynamism and some creativity, and "people complained for years saying we should be bolder and more daring ... and try to boost growth." "At least from the vantage point of today, we like that approach," Meirelles said. -By Matthew Cowley, Dow Jones Newswires; 201 938 5692; matthew.cowley@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: djnewsplus.com. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 24, 2009 14:55 ET (18:55 GMT)