Brazil infrastructure to flourish in 2008

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BRASILIA, Jan 1 (Reuters): Brazil will invest heavily in infrastructure next year, helping the economy to grow faster and create jobs, President Luiz Inacio Lula da Silva said yesterday.
Analysts said the government would have to cut its investments by half next year after the Senate voted down a bill this month worth 38 billion reais ($21.5 billion) in tax revenue.
But Lula said he was optimistic that infrastructure projects would come off the drawing board in coming weeks.
"There is a lot of investment about to happen...between February, March and April almost all these projects will start generating jobs," Lula said on his weekly radio address.
The government launched a major investment plan in January to remove bottlenecks and modernise infrastructure.
Some government economists expect investments of 13 billion reais in infrastructure to generate 2 million new jobs.
Capital investment is expected to grow by 14 per cent next year, the fastest rate in at least a decade, according to the national industry confederation.
Business leaders have long complained that potholed roads, overburdened port facilities, and insufficient railroads were undermining Brazil's international competitiveness.
"We will have a 2008 that is better than 2007, with more jobs and more economic growth," Lula said. Independent economists expect the economy grew by 5.1 per cent in 2007 and will grow by 4.5 per cent next year.