Morgan Stanley Raises Growth Outlook for ‘Booming' Brazil GDP

June 14, 2010, 11:07 AM EDTJune 14 (Bloomberg) - Morgan Stanley raised its growth outlook for Brazil's economy this year after the government reported stronger than expected first quarter growth.

Morgan Stanley expects Latin America's biggest economy to expand 7.9 percent this year compared with a previous forecast of 6.8 percent, Marcelo Carvalho, Morgan Stanley's chief economist in Sao Paulo, wrote in an emailed report today.

"The math changes, although our view ahead does not: Brazil's economy is booming," Carvalho wrote.

Brazil's economy is growing at a Chinese-like pace, with the labor market tight and little spare capacity, according to the report.