Brazil GDP grows 0.6% in Q1

Brazil's gross domestic product (GDP)in the three months to March grew 0.6 percent from the previous quarter and 1.9 percent from the same period of 2012, the Brazilian Institute of Geography and Statistics (IBGE) said Wednesday. The first-quarter results have led the Brazilian government to review its estimates for the GDP growth this year. Finance Minister Guido Mantega has said that Brazilian GDP this year would probably grow less than 3.5 percent foreseen in the 2013 federal budget. But Mantega stressed that January-March quarter results highlighted the rise in investments, saying that the quality of Brazil's growth has improved. According to the IBGE, investments rose 3 percent compared with the same period of 2012 after four consecutive contractions. Brazilian President Dilma Rousseff has approved numerous tax cuts and incentive measures to stimulate the economy since she came to power. Mantega said the government will not carry out more stimulus measures to boost consumption. According to him, the measures announced so far are effective and the economy is growing despite an unfavorable external environment. President of Brazil's Development Bank (BNDES) Luciano Coutinho also defended that Brazil is growing in a more sustainable manner this year. "There is a positive difference in quality, as investments are on the rise. That means a healthier growth," he said.