Credit-to-GDP ratio in Brazil should reach 49% this year

With a total volume of credit operations at R$1.435 trillion in February, the Central Bank’s director of Economic Policy, Mario Mesquita, says the credit-to-GDP ratio should reach 49% this year. Mesquita’s latest forecast is up from 48% in December.
The February credit operation volume was 44.9% of GDP, up from 40.7% in February 2009.

According to the head of the Economic Department at the Central Bank, Altamir Lopes, the expansion of credit is not strong enough to cause concern, but strong enough to give economic growth a boost. “Credit will continue to sustain growth at reasonable rates creating good dynamics for the economy,” he declared.