2007 GDP consolidates sustainable cycle
Valor Econômico - 03/13/2008
The good performance of the Gross Domestic Product (GDP) last year confirms the sustainability of the growth cycle started in 2004. With a strong increase in investments and consumption of the families, the economy grows with more income distribution, supported by the soundness of the external accounts and by a tax condition fairly more favorable, two missing factors in the period from 1993 to 1997, which led to the abrupt interruption of the cycle in the following year. Eventually, the external scenario was extremely positive in the last five years, with skyrocketing prices of the exported commodities. Between 2004 and 2007, Brazil grew at an average of 4.53%, with the per capita GDP increasing 3.05% in the period. In the economist Celso Toledo's opinion, the recent performance indicates the country started a phase in which the GDP may grow at higher rates, and with oscillations above those of the past. The opinion is shared by Ernani Torres, director of the planning and economic follow-up area of BNDES (Brazilian Social and Economic Development Bank). He remarks that the economy has been growing without interruption for 24 quarters, the longest trajectory since the 70's. "Investments in infrastructure and basic areas and the increase of the consumption provide the country conditions to grow from 5% to 6% a year in the next four years", declares Torres. He also believes the increase of the investments in the formation of fixed capital will guarantee the expansion of the productive sector, preventing the stronger inflationary pressure in the short term. "What I see is a stronger and more structured growth cycle".