THE RECOVERY: SO FAR, SO GOOD.

This article asserts that Brazil's economy is recovering from the 1998-1999 recession that engulfed most of Latin America. Brazil's recovery from the 1998-1999 recession is gaining momentum in 2000. Growth is strong and inflation is falling, as are interest rates. While several risks could spoil the outlook, the recovery seems set to continue into 2001. Powered by the industrial sector, real gross domestic product grew at a stronger-than-expected 5% annual rate in the first quarter, after an upwardly revised 9.4% pace in the fourth quarter. Growth from a year ago now stands at 3.1%, and economists expect growth in the 3.5%-to-4% range in 2000 and 2001.