Alonso Soto – Reuters, 10/26/2012
Just when it seemed the Brazilian economy was impervious to a year of non-stop stimulus policies, the recovery finally looks to be underway — this time, for real.
Optimistic Brazilian policymakers have been forced to repeatedly slash their growth expectations over the last year and a half after spikes in economic activity turned out to be short-lived.
Now, members of President Dilma Rousseff’s economic team tell Reuters they are confident the economy grew more than 5 percent in annualized terms in the third quarter, after a barrage of tax and interest rate cuts sparked a surge in sales of everything from cars to freezers. In the second quarter, the economy had expanded at an annualized pace of only 1.6 percent.