Brazil: Good export performance
Activity is showing signs of recovery, following a slowing in the second quarter. Private consumption continues to be strong, and investment is likely to bounce back. The trade and current account surpluses remain robust on the back of sustained good export performance. Financial conditions have been benign, even during the pre-election period, buttressed by a continued improvement in external vulnerability indicators.
The policy mix is becoming more accommodating. Sustained disinflation and the lacklustre GDP readings have prompted continued monetary easing. The exchange rate was under some pressure in May-June but has stabilised since then. Fiscal policy is on track, with the end-period targets expected to be met despite the ratcheting-up of current expenditure, especially on pensions.
|Population (000s), 2005||184 184|
|Area (000 sq km)||8 515|
|GDP (Billion USD), 2005||796|
|Life expectancy at birth (Women, Men), 2005 ||75.8, 68.2|
|Total labour force (000s), 2005||96 032|
|Government type||Federal Republic|
|Indicators||% change unless otherwise indicated|
|Real GDP growth||3.1||3.8||4.0|
(% of GDP)
| Primary fiscal balance (% of GDP)||4.3||4.3||4.3|
|Current account balance (% GDP)||1.6||0.9||0.4|
No. 258/259, December 2006