Brazil's economy has been growing vigorously in recent months, with most analysts predicting it will achieve an annual rate of at least 5% over the course of 2010.

Figures released this week show that more than 960,000 jobs were created in the formal sector between January and April – the highest number since records began. Labour and employment minister Carlos Lupi predicted 2.5 million formal-sector jobs will be created by the end of the year – 25% more than had been anticipated in January.

Speaking in Rio de Janeiro on 20 May, the head of the Institute of Applied Economic Research, Marcio Pochmann, pointed out that the global economic recovery is being led not by the most industrialised nations but by developing countries such as Brazil, China and India.

He suggested Brazil could become the world’s fifth biggest economy by the end of this decade, a prediction echoing that made by President Lula during a visit to London in November 2009 (see FT Video).

Pochmann added, however, that Brazil’s objective should not be fast growth in itself, but to combine growth with social welfare and environmental sustainability.

Source: Agência Brasil and Embassy of Brazil in London