Stimulus package announced by Brazil
Updated at 8:12 am on 19 August 2012
Brazil has announced the first phase of an economic stimulus package designed to boost growth in the economy.
More than $US60 billion will be invested in roads and railways over the next 25 years, with more than half in the next five years. This includes 8000km of new roads and 8000kms of railways.
Further announcements involving investment in ports and airports are expected in the coming weeks.
Growth in Brazil is predicted to be less than 2% this year, its weakest annual performance since 2009 and a sharp slowdown from an impressive 7.5% rise in 2010.
The BBC reports recent measures, such as the recent devaluation of the currency, the real, and the progressive reduction in interest rates, have so far failed to stimulate growth.
Brazil's growth over the past few years has been based on the expansion of credit and on consumer spending.
In addition to the announcements on Wednesday, President Dilma Rousseff is preparing to lower the price of energy for industry and abolish some federal taxes, which could cut the price by 10%.
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