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Brazilian economy grows 9.85 pct in first quarter

Brasilia, Brazil, 20 May – The Brazilian economy posted year on year growth of 9.85 percent in the first quarter of 2010, according to the Economic Activity Index of the Brazilian Central Bank (IBC-Br), published Wednesday.

The index pointed to a growth rate that was higher than that projected by the Finance Ministry and by most market analysts, who expected growth of around 8 percent.

The Brazilian Geography and Statistics Institute (IBGE), which publishes the official Gross Domestic Product (GDP), is only due to announce first quarter figures on 8 June.

The IBC-Br figure justifies the Central Banks decision, at the end of April, to increase Brazil’s interest rate by 0.75 basis points in order to control the risk of a rise in inflation. (macauhub)

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