Itau Sees Brazil GDP Growing 7.5% ‘Chinese-Like’ Pace in 2010

Itau Sees Brazil GDP Growing 7.5% ‘Chinese-Like’ Pace in 2010
May 12 (Bloomberg) -- Brazil’s economy will grow at a faster, “Chinese-like rate” this year as a result of a stronger global economy and measures taken to stimulate domestic demand, Itau Unibanco Holding SA said.

Latin America’s biggest economy should expand 7.5 percent this year, above a previous estimate for 6.5 percent,
Itau’s chief economist, Ilan Goldfajn, wrote in a report. Brazil’s biggest bank by market value also raised its estimate for economic growth next year to 4.8 percent from 4.6 percent.

Even as growth accelerates Itau maintained its call for the central bank to raise the benchmark interest rate to 11.75 percent this year from a current 9.5 percent.

The global economy should grow 4.5 percent, above Itau’s previous forecast of 4.2 percent.

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net
May 12, 2010, 11:52 AM EDT