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Brazil gov't announces $4B stimulus package

Associated Press Published: June 27, 2012
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BRASILIA, Brazil (AP) — Brazil's government is announcing a new, $4 billion economic stimulus package to combat stagnant growth.

The program announced Wednesday by President Dilma Rousseff focuses on a wide array of government purchases, from backhoes to motorcycles to military equipment.

Rousseff says the government will use stimulus packages "without restriction" as Brazil is hit by the crisis in Europe and hobbled by slowing domestic consumer demand.

Officials say the bulk of the money will be spent this year.

Brazil's economy grew just 0.2 percent in the first quarter of this year.

Last year the economy advanced 2.7 percent — making it the weakest among the so-called BRICS emerging nations group.

The government maintains a target of 4 percent growth this year. But market forecasts put expansion at 2.2 percent.