* Stimulus to focus on ports, airports, railroads, roads
* Rousseff says Brazil still committed to fiscal restraint
By Pedro Fonseca
LONDON, July 27 Brazilian President Dilma
Rousseff said on Friday her government will unveil more measures
to stimulate the economy in the next few months, including
investments in ports, airports, railroads and highways.
Speaking to reporters in London, where she is attending the
opening of the Olympic games, Rousseff also said Brazil's
economy will grow at a faster rate in coming months, despite the
impact of the global economic crisis.
"We will move forward with our counter-cyclical program in
August and September," she said, referring to the slew of
stimulus measures Brazil has deployed since the beginning of the
year, such as tax breaks to stimulate consumer demand.
The government does not rule out additional tax breaks, but
the focus now seems to be on tackling the so-called "Brazil
cost" - the mix of logistical bottlenecks, high taxes and other
costs that make Brazil one of the world's most expensive places
to do business.
"We're very worried about the country's cost," Rousseff
said, citing plans to reduce electricity costs by lowering taxes
for energy utilities.
Brazil, which will host the World Cup in 2014 and the
Olympics two years later, has been struggling to improve and
expand its infrastructure as its economy grinds to a near halt.
After strong growth of 7.5 percent in 2010, the economy grew
by just 2.7 percent in 2011. This year, economists are
forecasting growth of as low as 1.5 percent.
Rousseff said additional stimulus measures will not
compromise Brazil's fiscal stability, even as some economists
warn the country may miss this year's primary surplus target - a
measure of revenues left over at year-end that excludes debt
"We surely are on a path to stability. We will do all of
that while maintaining our fiscal strength, inflation under
control and keeping our social policies," she said.