Alonso Soto and Brian Winter – Reuters, 07/24/2012
BRASILIA/SAO PAULO, July 23 (Reuters) – President Dilma Rousseff is pessimistic about Brazil’s chances for a meaningful economic recovery this year and is pushing ahead with new measures aimed at lowering taxes and increasing investment, hoping they might give the economy a lift by 2013, government officials told Reuters.
The measures include a consolidation of some overlapping federal taxes; a new round of concessions that would allow the private sector to manage more of the country’s congested airports and seaports; and a more aggressive effort to reduce electricity costs for manufacturers and others, the officials said on condition of anonymity because they were discussing private policy discussions.
Brazil’s economy has been spinning its wheels since mid-2011 as weak manufacturing activity, financial contagion from the euro zone and souring investor sentiment take the shine off what had been one of the world’s most dynamic emerging markets.
[...] developments are assuaged by some good news: though President Dilma Rousseff is apparently “very worried” about the economy, central bank chief Alexandre Tombini predicts an upturn in the second half [...]