Brazil Isn't Ready for 7% Annual Economic Growth, Fraga Tells O Estado

Brazil isn’t prepared for economic growth of 6 percent or 7 percent a year because of inflationary pressures and infrastructure “bottlenecks,” Arminio Fraga, former president of the central bank, told O Estado de S. Paulo.

Fraga said all the “mature” global economies are in a “very worrying fiscal situation” and that the financial crisis may worsen, according to the newspaper. He said the situation won’t lead to the end of the euro unless there is a “gigantic collective error in economic policy,” Estado reported.

Fraga, who is the founding partner of Gavea Investimentos Ltda., said he wants to return to politics “in the long term” and doesn’t have any immediate plans, the paper said.

To contact the reporter on this story: Laura Price at lprice3@bloomberg.net

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