The Associated Press August 23, 2011, 3:56PM ET

Brazil fears worsening of global economic crisis

Brazil's finance minister says growth in Brazil and other emerging nations may slow down because of worsening economic conditions in the U.S. and Europe.

Guido Mantega says Brazil's government is still forecasting growth of 4.5 percent this year. But he tells a Senate committee that this figure could drop to 4 percent.

Mantega says a 4 percent increase in the country's gross domestic product is enough to maintain tax collection and job creation at acceptable levels.

He says if GDP growth dips below 4 percent, the government will lower interest rates to prevent a sharper drop.

Private economists surveyed this week by the central bank forecast Brazil's economy will grow 3.8 percent.


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