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Brazil pledge stimulus to restore rapid growth

Brazilian President Dilma Rousseff has announced a $66 billion infrastructure investment in an attempt to restore growth in one of the world's emerging superpowers
 President Dilma Rousseff
 
 

In the first of several programmes aimed to return Brazil to its recent impressive economic growth statistics, President Dilma Rousseff has unveiled a whopping $66 billion investment in the country’s infrastructure in a move which will benefit public and private construction firms in Brazil enormously. 

Economic growth in the South American tour-de-force has deteriorated slightly of late, mirroring results in other BRIC nations, who have been hit by the world-wide economic slowdown.  In 2010, Brazil’s GDP grew 7.5 percent, however in 2011, just one year later, that growth was slowed to 2.7 percent.  The new investment plans are aimed at stopping the rot and returning the country to its 2010 boom.

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The money will go towards the construction of toll roads and rail lines, which are reportedly much needed as the country gears up for both the 2014 World Cup and 2016 Olympic games.

Included within this expansion will be 10,000 km of new train track and building or widening 7,500 km of federal highways. 

The government will award private companies concessions for construction, maintenance and operation of the projects through a competitive bidding process – an approach which was hailed by Brazilian business sector officials. 

Clesio Andrade, head of the industry group The National Transport Confederation, praised Rousseff’s eagerness to opening up investments to the private sector;

“It’s important after more than 20 years that the government has left behind ideology and opened up the projects to participation and private enterprise.  It gives a lot of strength to the projects and will help generate more jobs.”

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