Brazil's economy appears to be emerging from the recession and is showing signs of improvement with industrial production on the rise and a healthy trade surplus, according to Brazilian Central Bank Chairman Henrique de Campos.
Speaking Tuesday at a Latin American banking conference in Miami, De Campos said that foreign direct investment in Brazil was increasing and was expected to rise from $8 billion this year to almost $13 billion in 2004.
Production levels for heavy industry was up 4.2 percent in the first nine months of this year compared to the same period in 2002 and Brazil was enjoying a $23 billion trade surplus, he added.
The bank chief explained that President Luiz Inacio Lula da Silva would continue with his plans to rein in state spending, to avoid increasing the country's debt burden and to control inflation and interest rates.
Lula will also promote reforms in the social security system and tax structure, De Campo said.
"For the first time in decades, Brazil is now enjoying the required conditions for sustained growth without triggering an imbalance in its external accounts or inflationary pressures," the chairman said.
According to the government, the Brazilian economy must grow around 3 percent next year and inflation should be near 5.5 percent.