BRASILIA: Brazil will see stronger economic growth this year than in 2011 despite a sluggish global economy, while inflation is edging downward toward the official target of 4.5 percent, the central bank president said Tuesday.
"The expectation is that the world economy will slow down in 2012. But the Brazilian economy should accelerate its growth in 2012," Alexandre Tombini told the Senate's Economic Affairs Committee.
He added that the national economy "should grow more this year than last and more than in the second half" of last year.
The government had been banking on five percent gross domestic product growth for 2012, to be fueled by tax rebates, industry incentives as well a cut in interest rates, in addition to an increase in the minimum wage on January 1 to the equivalent of $332 per month from $294.
But it has been gradually lowering its forecast to around 4.5 percent.
The report on Brazil's 2011 growth, due in March, is expect to show around three percent growth following GDP expansion of 7.5 percent in 2010.
Tombini said the country's monthly inflation rate of 0.56 percent was on a downward trend and "compatible" with movement toward the official target.
This year, the government said it hoped to bring inflation under five percent, close to the center of the official target of 4.5 percent.
Latin America's leading economy finished 2011 with 6.5 percent inflation, reaching the upper limit of the government target.
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