Brazilian economy tipped for faster than average expansion

Brazil's economy might be adversely affected by the global economic crisis but that won't stop it from growing at a healthy rate, China's state news agency has reported.

According to Henrique Meirelles, the president of Brazil's Central Bank, the country's economy will weather the downturn much more successfully than the majority of its counterparts - making it an ideal location for property investment.

Indeed, he predicts that it will grow at a faster rate than the expected global average of two per cent.

"Brazil will undergo a deceleration in the credit next year, which will produce a general deceleration of the economy, but in a much lower pace than many countries," Mr Meirelles is quoted as saying by Xinhua.

Mr Meirelles went on to say that, despite taking action to minimise the effects of the credit crunch, the central bank still had more than US$200 billion in foreign reserves.

Around US$77 billion has been spent by the bank to improve liquidity levels and ensure credit is available in all areas of the economy.

Brazil and China are two of the four countries - along with Russia and India - in the BRIC grouping of developing economic powers.

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