* Trade minister says may extend payroll tax breaks to
* Finance minister sees investment rebounding next year
* Inflation under control and will decline, Mantega says
SAO PAULO/BRASILIA, Nov 29 The Brazilian
government is studying more stimulus measures to stoke an
economy in which third-quarter growth is expected to be "nothing
spectacular," Finance Minister Guido Mantega said on Thursday.
The government is looking into widening payroll tax breaks
to more areas of the economy, including the services sector,
Trade Minister Fernando Pimentel told journalists separately.
In a newspaper interview published on Thursday, Mantega said
the government also plans to extend a capital-goods financing
program and launch investment programs for the port and airport
Mantega added that over time the payroll tax breaks would be
extended to the economy as a whole, according to the interview
published by Folha de S.Paulo.
Both comments come ahead of Brazil's official GDP data for
the third quarter, to be published on Friday at 9 a.m. (1100
A Reuters poll of economists forecast a 1.2 expansion in the
third quarter from the previous one.
Although that would be the fastest quarterly rate of growth
since the second quarter of 2010, it would remain well below
last decade's torrid growth rates that turned Brazil into a hot
spot for global investments.
"I would be satisfied with any number between 1 percent and
1.3 percent," Mantega said, adding that a 1 percent print would
indicate an annualized growth rate of 4 percent.
While investments are expected to decline for the fifth
quarter in a row according to the Reuters poll, Mantega said,
"next year (investment) is going to be the locomotive of the
economy ... growing at a rate of about 8 percent next year and
14 percent in 2014."
A barrage of government stimulus measures and steep interest
rate cuts have started to slowly pull Brazil's economy out of
The central bank left its benchmark rate
unchanged at a record low on Wednesday, however, in an effort to
rein in inflation, which Mantega said was "under control and on
a declining trajectory."