Worldwide economic slowdown in 2008 to have no effect upon Brazil's economy

Brazil's economy will not be effected by a possible worldwide economic slowdown in 2008.

Photo: Worldwide economic slowdown in 2008 to have no effect upon Brazil's economy

"I believe there will be no major consequence of this turbulence, which will have been fully assimilated in 2007," Mantega said. "Should there be some kind of deceleration in the world economy, the impact on Brazil will be a minor one."

He praised European and U.S. monetary authorities for "successfully containing the negative effects" of the global credit crisis which he said is now "under control."

"I am not saying that it (market turbulence) has ended, but I do believe the worst is over and that the problems it has caused are being assimilated."

Commenting on figures released by the Trade and Development Ministry that point to a yearend trade surplus of US$40 billion (28.24 billion EUR) compared to last year's US$46 billion (32.47 billion EUR), he said the drop was expected "because the economy is growing and domestic demand for products made in other countries must be met."

Brazil's gross domestic product, the measure of all goods and services produced in South America's largest economy, is expected to rise 4.7 percent in 2007 and 5 percent in 2008.