Brazil

Outlook continues to improve

Recent indicators underscore the notion that the economy will rebound strongly this year. The domestic sector will likely remain the primary driver of economic growth, buttressed by falling unemployment and improving consumer confidence. As a result, the outlook for this year continues to improve and economic growth is seen bouncing back to pre-crisis levels. On a negative note, inflation appears to be picking up again, which will likely prompt monetary authorities to raise interest rates in the coming months.