MercoPress. South Atlantic News Agency

Brazil forecasts a budget primary “floor surplus” of 4.25%

Brazil's 2006 budget primary surplus will have a “floor of 4.25% of GDP” forecasted Finance minister Guido Mantega in Washington.

"4.25% is the floor", stressed Mr. Mantega during a meeting with journalists in the framework of the IMF/World Bank spring meetings.

"It can't be less, but a bit more won't hurt anybody", added Mr. Mantega who anticipated that the administration of President Lula da Silva would have then "completed four consecutive years of primary surpluses above 4% of GDP".

In a previous interview in Brazil Mr. Mantega had admitted that the 2006 budget primary surplus would be in the range of 4.25%, but in Washington he insisted that was the "floor".

President Lula da Silva when taking office in 2002 committed his four year administration, which ends next December to an annual 4% budget surplus. However the target was comfortably achieved with 4.84% in 2005 and 4.59% in 2004.

However economic growth has not been that encouraging with 2.5% last year and an even lesser average in the first three years.