Brazil Minister Says Economy to Grow 4% in 2009, Folha Reports

By Alexander Ragir
Sept. 14 (Bloomberg) -- Brazil's economy will likely grow 4 percent next year as oil exploration bolsters investment even as the U.S. slowdown hampers growth, according to Folha de S. Paulo, citing Paulo Bernardo, Brazil's planning minister.
Investment from oil exploration in the pre-salt region, which runs along Brazil's coast from Espirito Santos to Santa Catarina, will boost growth, Bernardo told Folha. A worsening of the economy in the U.S., which has presidential elections in November, is the ``only thing'' that can retard Brazil's growth, he said.
``The next American president will have to define an exit strategy in Iraq, strengthen the dollar, recover the housing market and reduce the twin deficit,'' Bernardo told Folha. ``Next year there will be changes over there, but we don't know their intensity, and this is the only thing that can hinder us.''
A prolonged recession in the U.S., Brazil's biggest trading partner, may slow growth to 3.5 percent, the minister said.