[LINK] "Brazil Emerges From Recession, Led by Domestic Demand"

[rfmcdonald]

"And I, for one, welcome our new Lusophone overlords."

Brazil’s gross domestic product grew more than analysts forecast in the second quarter, pulling the economy out of its first recession since 2003 thanks to rising domestic demand.

Brazil’s economy expanded 1.9 percent from the previous quarter, the statistics agency said today in Rio de Janeiro. Analysts expected 1.7 percent growth, according to the median estimate of 35 analysts surveyed by Bloomberg. GDP fell 1.2 percent from a year earlier, less than the 1.4 percent drop forecast. Goldman Sachs Group Inc. and BNP Paribas revised their 2009 GDP forecasts higher following the announcement.

Six straight months of job growth, coupled with tax breaks and record low borrowing costs, are driving consumer spending, helping Latin America’s largest economy rebound from the global financial crisis faster than was previously expected.

“The significant growth in family consumption shows the economy is out of recession and ready to expand,” Newton de Camargo Rosa, chief economist at Sul America Investimentos, said in a telephone interview. “Entrepreneurs are starting to realize demand growth is sustainable and will resume investment plans, which will also contribute to growth.”

As people who commented on this article at Facebook observed, Brazil's obviously doing something right: competent economic management goes a long way.