Brazil's economy expanded 3.7% in 2006, based on a new method of calculation, the national statistics agency said March 27. The new calculation used by the Brazilian Institute of Geography and Statistics (IBGE) revised up the earlier estimate for 2006 gross domestic product (GDP) growth of 2.9%.
Even with the upward revisions, Brazil has been growing at a slower pace than most other emerging market economies. Growth was fueled largely by domestic demand, including consumer spending and business investment, while a rise in exports was largely offset by increased imports. Household spending was up 4.3% as incomes grew 5.6%.
The central bank said it was upgrading its outlook for 2007 economic growth to 4.1% from 3.8%. The report projected inflation for the year at 3.8% instead of 3.9%.
Copyright Agence France-Presse, 2007