Sun, Oct 28, 2012 - Page 7 News List

New blackout hits 53m Brazilians

Reuters, BRASILIA

“If you want the economy to grow at 5 percent per year you need to increase provisions of electricity by 5 or 6 percent per year. When you don’t, you end up with blackouts and that’s what’s happening recently,” said Neil Shearing, chief emerging markets economist with Capital Economics in London.

Energy policy has been at the forefront of Rousseff’s efforts to boost growth. Last month she announced a major cut in electricity taxes in a bid to help boost industry and address the so-called “Brazil cost” — a mix of high interest rates, labor costs, onerous taxes and infrastructure bottlenecks that hamper competitiveness.

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