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UPDATE 2-Brazil may grow above 4 pct in 2013 - finance minister
November 13, 2012 / 2:15 AM / 5 years ago

UPDATE 2-Brazil may grow above 4 pct in 2013 - finance minister

* Mantega says investment key to solid growth

* Economy likely grew at 3.5-4 pct annualized rate in Q3

RIO DE JANEIRO, Nov 12 (Reuters) - The Brazilian economy could grow more than 4 percent in 2013 as investment picks up after the government gave about 45 billion reais ($22 billion) in tax breaks to businesses this year, Finance Minister Guido Mantega said on Monday.

“We are speeding up growth of the Brazilian economy in the second half so that we can enable the economy to grow more than 4 percent in 2013,” Mantega said at a shipbuilders event in Rio de Janeiro. “For that to happen we need investment to grow between 8 to 10 percent next year compared to this year.”

He said the Brazilian government gave billions of reais in tax breaks to companies to keep investing in Latin America’s largest economy.

The Brazilian economy is showing signs of life after a year of near zero growth due to weakening industrial output at home and a sharp slowdown abroad.

Still, some analysts say President Dilma Rousseff’s government still has to do more to raise anemic investment levels in Brazil.

Mantega said the economy likely grew at an annualized rate of between 3.5 and 4 percent in the third quarter of this year, when it would have expanded 1 percent from the second quarter.

He said though Europe is stuck in a “chronic crisis” in terms of its politics, the worst of its debt woes may be over.

“I don’t think the crisis will worsen, what will happen now is slower growth,” he told a local television station.

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