Output growth has gained momentum since the second quarter and should pick up further over the near term. Private consumption has been resilient, and investment is on the rise.
Both the trade and the external current accounts remain in healthy surpluses, despite the rising demand for imports as a result of the strengthening of the réal.Prudent macroeconomic management needs to continue to anchor expectations. Rapid disinflation has paved the way for on-going monetary easing, and the end-year inflation target is now within reach. Fiscal performance remains strong, benefiting from buoyant revenue, and a further fall in the public debt-to-GDP ratio in 2005-07 would be desirable. New legislation on bankruptcy and public-private partnerships has been a significant step forward in structural reform, though on-going political turbulence is disrupting the legislative calendar.
|Population (000s), 2004||181 586|
|Area (000 sq km)||8 515|
|GDP (Billion USD), 2004||605|
|Life expectancy at birth (Women, Men), 2003 ||75.2, 67.2|
|Total labour force (000s), 2004||92 187|
|Government type||Federal Republic|
|Indicators||% change unless otherwise indicated|
|Real GDP growth||3.2||3.7||3.9|
|Fiscal balance (% of GDP)||-3.7||-2.5||-1.5|
| Primary fiscal balance (% of GDP)||4.3||4.3||4.3|
|Current account balance (% GDP)||1.6||0.7||0.3|
© OECD Observer
, No. 252/253, November 2005