International Monetary Fund Managing Director Rodrigo Rato Friday praised Brazil's recent political and economic developments.
After meeting with President Luiz Inacio Lula da Silva, Rato -- who just visited neighboring Argentina -- said in a statement Brazil had implemented an ambitious reform agenda and sound economic policies in the last year or so.
In 2003, Lula pushed an ambitious social security reform package through the Congress as well as other reforms while maintaining an IMF-mandated 4.25 percent budget surplus as part of their loan agreement.
"These courageous policies have borne fruit," Rato said. "Brazil's vulnerabilities have been reduced and the economy's growing resistance has helped the country weather recent external shocks," referring perhaps to recent spikes in world oil prices.
The IMF "remains willing to support and offer technical capacity to Brazil in efforts to help the country develop its vast economic potential and improve the living standards of its population, especially of the least protected social strata," he added
Rato also said the IMF would re-examine how Brazil calculates its primary budget surplus. Brazil wants exclude some projects from consideration under the budget so more could be spent on social programs and infrastructure improvements.
© Copyright 2004 by United Press International
