Brazil’s Gross Domestic Product last year increased 5.4% to US$1,463bn, the fastest rate of growth since 2004.

The rate of GDP growth has increased for three consecutive years (it was 3.2% in 2005, and 3.8% in 2006) while inflation has remained firmly under control and the foreign debt/GDP ratio, which stood at 40% eight years ago, is today only 0.7%.

Total Brazilian international reserves (US$196bn) now exceed the total foreign debt (US$163bn) by more than US$30bn, a fact that should allow Brazil to achieve a risk classification of 'investment grade'.

The Brazilian Central Bank has predicted that GDP growth in 2008 will be 4.8%, with a rate of inflation of 4.7% and a balance of payments surplus of US$27bn.

Source: Ministry of External Relations and Embassy of Brazil in London