Palocci Forecasts Strong 2006 Growth For Brazil; Budget Deficit At 11-Month High

Palocci Forecasts Strong 2006 Growth For Brazil; Budget Deficit At 11-Month High

Brazil

Brazil's finance minister, Antonio Palocci, has said he believes the country will experience strong growth next year of around 5%. However, economists are predicting average growth of about 3.5% and see Palocci's forecast as too optimistic. Slowing inflation has recently allowed the central bank to cut Brazil's high interest rates from 19.75% in September to its current rate of 18%. Further cuts are expected to stimulate growth. Meantime, increased government spending pushed the budget deficit u

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