Brazilian economy predicted to grow in 2007
Banking group BNP Paribas has predicted strong growth for the Brazilian economy and has also forecast interest rate drops in the coming year.
Portuguese financial newspaper Diario Economico quotes BNP Paribas' asset manager Jacopo Valentino as saying the economy would grow between 3% and 3.5% in 2007.
Mr Valentino' prediction isn't the only indicator that Latin America's largest economy is in good health; one of the country's largest banks, Uniao de Bancos Brasileiros, reported profits rose 13% last quarter.
The profit is the result of increased consumer borrowing that has been driven by low unemployment and economic growth, with Bloomberg reporting the central bank estimated expansion to have been 2.7% last year. Unemployment finished the year at its lowest for the year at 8.4 per cent.
Mr Valentino suggested that the stock market should provide a 20 per cent return in 2007 and the buoyant economy and falling interest rates make property a sound investment as well.
< Back to latest news