Brazil´s Economy Strong, Says International Monetary Fund

Brazil´s economy continues to expand, reports the International Monetary Fund (IMF).

In a recent statement, the IMF said growth in the country´s gross domestic product is expected to rise by about 3.5 percent in 2006, up from 2.3 percent in 2005.

Inflation also has “converged” toward the Brazilian government´s official target of 4.5 percent, said the IMF. It also hailed a decline in Brazil´s unemployment rate, and the “significant progress” made in alleviating poverty and inequality.

Brazilian authorities also have taken advantage of favorable external conditions to deepen Brazil´s domestic financial markets and enhance their integration with global markets, said the IMF.

The IMF said “unlocking” Brazil´s growth potential is the country´s most important challenge. While per capita growth has recovered and is “now on a more solid footing, Brazil can do much better,” the report concludes.