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Brazil's Primary Account Surplus Well Above IMF Target |
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Written by Lana Cristina
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Friday, 24 September 2004 |
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According to Brazil's secretary of the National Treasury, Joaquim Levy, the increase in Brazilian primary account surplus target (from 4.25% of GDP to 4.50%) will improve the economic climate, especially for private investors.
"That is what makes the difference. The fact is that most investment comes from the private sector," said Levy, and those investments are supporting present economic growth, he added.
Levy cited data showing that federal government investments in August reached US$ 1.5 billion (4.5 billion reais) and could reach US$ 1.73 billion (5 billion reais) in September.
"When you include state and municipal investments, the total tends to triple," he declared.
In the latest figures on the central government's primary account (which does not include interest payments) for the month of August, the National Treasury had a surplus of US$ 2.2 billion (6.4 billion reais), but the Social Security system had a deficit of US$ 902 million (2.6 billion reais) and the Central Bank also had a deficit - US$ 10.2 million (29.5 million reais), for a final total surplus of US$ 1.31 billion (3.8 billion reais).
For the year, the primary account surplus is now US$ 14.4 billion (41.7 billion reais), well above the US$ 11.4 billion (33.1 billion reais) target in the IMF agreement.
However, the figures do not include state-run enterprises which Levy says should eventually come up with a primary surplus of their own of US$4 billion (R$11.7 billion) so the government can close out the year with a final primary surplus of US$24.8 billion (R$71.5 billion). Levy says that up to August the state-run enterprise sector primary surplus was US$1.73 billion (R$5 billion). "There is no reason not to expect strong performance in this sector," concluded Levy.
Agência Brasil Reporter:Lana Cristina Translator: Allen Bennett
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