Mantega Says that Brazil's Economy is Walking with "Two Crippled Legs"

12/12/2013 - 08h47

The Brazilian economy is walking with "two crippled legs", according to Finance Minister Guido Mantega.

For him, the weakness stems from the effects of the international crisis and a lack of credit to fund consumption.

According to the minister, the low growth around the world is a "counterblast" to Brazil's performance.

Now, within the country, rising defaults have led banks to become more cautious in issuing new loans, which is limiting the expansion of consumption, he said.

"This means that the Brazilian economy is growing with two crippled legs: on one hand, consumer finance, which is scarce, and on the other hand, the international crisis that robs us of a part of our growth potential."

The minister pointed out, however, that consumer defaults are dropping and the world economy is recovering, factors that should contribute to a resumption of the Brazilian economy.

Translated by STEVE HUGHES

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	Ueslei Marcelino/Reuters
	The Brazilian economy is walking with "two crippled legs", according to Finance Minister Guido Mantega