Brazil GDP to grow 5.5% in 2010: Fitch

12:48, March 10, 2010      

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Brazil's gross domestic product (GDP) is expected to grow 5.5 percent in 2010, Fitch Ratings said on Tuesday.

The credit rating agency also said the country is in a good position to recover from the global financial crisis.

However, it said economic uncertainties are likely to increase due to the upcoming presidential elections. But major changes in economic policies after the elections are not expected.

Meanwhile, an increased demand may lead to greater inflation this year, Fitch said. Brazil reported an accumulated inflation rate of 1.54 percent in the first two months of 2010, a 1.03-percent growth year on year.

The agency also said perspectives for Brazilian banks in 2010 are positive, thanks to a rise in credit levels, which may lead to an increase in the banks' revenue.

Fitch said that with the help of the government, the Brazilian banking sector managed to perform well in the financial crisis, but the sector will face another test in late 2010 and early 2011.

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