Brasilia - Brazil's government on Thursday announced an 8.4-billion-reais (3.6-billion-dollar) economic stimulus package, including tax cuts in personal income and cars, to revive its flagging economy.

The measures are aimed at ensuring a 4-per-cent growth in the country's gross domestic product (GDP) for 2009, said Finance Minister Guido Mantega when presenting the package together with Economy Minister Miguel Jorge and Central Bank head Henrique Meirelles.

Singapore  - The Civil Aviation Authority of Singapore (CAAS) said Friday it was extending and expanding its Air Hub Development Fund (AHDF) to help airlines and airport service providers affected by the global economic downturn.

The AHDF, scheduled to expire December 31, 2008, would be extended by a year with an expanded budget of 130 million Singapore dollars (87.37 million US dollars) compared to the current 100 million dollars.

The CAAS said it would be introducing enhanced benefits, such as increasing the landing fee rebate by 10 per cent to 25 per cent under the extended fund for the benefit of the airlines using Singapore's Changi and Selatar airports.

Seoul  - South Korean GDP growth is expected to slow down from the 3.7-per-cent forecast for 2008 to 2 per cent in 2009, the central bank said Friday.

The central Bank of Korea (BoK) blamed the global economic downturn - which has curtailed the country's exports and cut down domestic consumption - for the lowest growth forecast since 1998.

"The Korean economy is unlikely to recover its growth momentum before 2010 as it undergoes a slowdown both in exports and domestic spending amid the global economic recession," said Kim Jae-Chun, a senior official at BoK.

The current account forecast by the BoK predicts a reversal from a deficit of 4.5 billion dollars in 2008 to a surplus of 22 billion dollars for 2009.

Washington  - Negotiations in the US Senate on a 14-billion- dollar emergency loan for the ailing car industry collapsed late Thursday, leaving the fate of General Motors Corp and Chrysler LLC uncertain.

The discussions failed after the United Auto Workers union refused to agree to Republican demands for wage cuts and reduction in labour costs to the level of Japanese competitors operating in the US.

"It's over with. I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight, said Senate Majority Leader Harry Reid, a Democrat.

He later said that there would be "no more work" on the bail-out until the "reconvening of the new Congress next year."

Singapore  - Singapore could well be the first economy in Southeast Asia to rebound from the current economic crisis by about third quarter of next year, economist Thierry Apoteker said in a news report Friday.

Apoteker, a French economist and head of a consulting agency, told television station Channel News Asia (CNA) he expected the US and Eurozone to see signs of recovery in the second quarter of 2009, with Asia following suit in the third quarter.

However, he remained cautious about the China factor in Asian economic recovery.

Washington  - Democratic congressional leaders held out hope Thursday that a compromise on an emergency loan for the US car industry was still possible, after another day of haggling with more skeptical conservative lawmakers.

The House of Representatives approved a 14-billion-dollar emergency loan for the car industry Wednesday night, imposing strict oversight rules in exchange for keeping General Motors Corp and Chrysler LLC out of bankruptcy at least until April.

But Senate Republicans vowed to oppose the same deal in the upper legislative chamber, where Democrats hold a much slimmer majority than in the House. They argued the legislation still provides the loan without forcing tougher restructuring moves on the companies.