SAO PAULO, Nov 30 (Reuters) - Brazil's economy grew just 0.6 percent in the third quarter from the second quarter, only half the rate expected by most analysts, as a flood of government stimulus failed to stir the Latin American giant out of its long slumber.

In an initial reaction to the data, Brazil's currency and interest rate futures slid, suggesting the government may resort to a weaker currency and low interest rates to prop up economic activity.

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Following are analysts' comments on the figures.

RAFAEL BACCIOTTI, ECONOMIST, TENDENCIAS, SAO PAULO:

'It's a model that's not working out. We will basically close 2012 with very weak growth--there were times people spoke about 4.5 percent, today its a maximum of 1 percent. To grow 1 percent in the year, growth in the fourth quarter needs to be 1 percent, and that is very difficult.

There are government measures that are clearly pro-growth, there were short-term measures that had to do with one sector or

another which in essence created a lot of restrictions, there is a lot of intervention and that is one of the things drawing back investment. In truth, the model is not working out very well.'

ALEXANDRE ANDRADE, ECONOMIST, VOTORANTIM CORRETORA, SAO PAULO:

'There is space to stimulate domestic demand, but that space is much smaller as (debt) delinquencies are higher and a large part of family income is being dedicated to debt payments. We have to wait a bit until the process of deleveraging ends and from then on the economy can return to growth, based on the consumption of durable goods in particular.'

THIAGO CARLOS, ECONOMIST, LINK CORRETORA, SAO PAULO:

'Investments are still very weak and in truth the adjustments that began last August are not having an effect. Business confidence has not improved enough to lead to a recovery in investments and there is nothing that signals an improvement for next year. GDP this year should come to about 1 percent, below the central bank's 1.6 percent forecast.'

JANKIEL SANTOS, CHIEF ECONOMIST, BES INVESTIMENTO, SAO PAULO:

'It was horrible, the number was half of what everyone was expecting, just very bad. Given what this government has done in the past, the expectation is that they are going to come out with more stimulus measures. The government is certainly going to be worried about this.'

LUCIANO ROSTAGNO, CHIEF ECONOMIST, WESTLB BANK, SAO PAULO:

'The numbers are truly disappointing, they indicate that despite all the stimulus injected in the economy, it's not reacting as hoped and it's necessary that the government continues to support growth because, clearly, the private sector is still not engaged in this recovery.'

(Reporting by Sao Paulo Newsroom Editing by W Simon) Keywords: BRAZIL ECONOMY/GDP

(asher.levine@thomsonreuters.com)(+55-11-5644-7756)(Reuters Messaging: asher.levine1.thomsonreuters.com@reuters.net)

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