Brazil Economy to Grow

The worst is over for the Brazilian economy, which is likely to start growing in the first quarter of 2017 after two years of recession, Finance Minister Henrique Meirelles said in an interview with newspaper O Estado de S. Paulo published on Monday, Reuters reported. Meirelles also said the central bank’s decision to cut interest rates last week was “solid”, technically justified and will help the economy grow quickly. “We are seeing a recovery in the first quarter of 2017,” Meirelles said. Brazil’s economy probably shrank more than 3% for a second straight year in 2016, according to government and market forecasts. With inflation slowing, the central bank cut its benchmark interest rate, the Selic, to 13% on Wednesday. Brazil’s economy got a slight but unexpected boost in November as early holiday discounts helped lift retail sales to provide a small relief in the long recession. Economic activity grew 0.20% in November from October after a drop of 0.15% the previous month, according to the central bank’s IBC-Br index on Friday.