FIESP says GDP will grow 2.8% this year

Yesterday the São Paulo Industrial Federation (“FIESP”) presented its forecast for GDP growth this year. According to its Department of Research and Economic Studies (“Depecon”), growth should close out the year at 2.8%, with the industrial sector (manufacturing) growing 1.5%. For next year, Depecon says growth should reach 2.6%.

FIESP also said that Brazilian exports are expected to reach $255 billion, with imports at $227 billion this year. As for next year, the forecast is for exports of $253 billion and imports of $233 billion.

The FIESP president, Paulo Skaf, complained that this year Brazil “marched in place” (“marco passo”). He said it had been an error to raise interest rates at the beginning of the year. “The reason we have less growth and fewer jobs created this year is not because of the international crisis, but because of decisions the government made,” he declared.

According to Skaf, the government should have dealt with the fiscal war between states, red tape in general, the lack of structural reforms and the delays in preparations for the World Soccer Cup and the Olympic Games

“This year the international crisis did not reach Brazil. It did not cross the ocean. What we have on our hands is an economic downturn caused by measures the Brazilian government decided to put in place,” concluded Skaf.