Brazil's central bank is forecasting economic growth cut by more than half, from 1.5 per cent to 0.6 per cent, with recovery not expected until the fourth quarter.
Merco Press said inflation in Brazil for 2003 is expected to reach 8.9 per cent, down from previous expectations of 10.2 per cent.
But the central bank said Brazilian foreign trade is booming, with a surplus of $2.67bn in September, the second highest in history, and with a nine-month accumulated surplus of $17.8bn.
Brazil's overseas sales during the first nine months of this year reached $55.8bn, with imports totaling $35bn, and with an accumulated surplus of $17.8bn. That's equivalent to a 126 per cent increase over the same 2002 period.
Merco said Economic Policy Secretry Marcos Lisboa told reporters, "It will take some time for salaries to recover, but we have signs that the recovery has begun and will continue in 2004."
Source: The Washington Times
