Risks, new and old

摘要

Last year Brazil's economy turned in its best performance for a decade. Growth topped 5%, powered at first by exports but with investment and consumption joining in. The economy looks more resilient too: public debt fell to 52% of GDP in 2004 from 57% the year before. All this comes as a great relief for the president, Luiz Inacio Lula da Silva. He attracted much opprobrium, especially from parts of his own Workers' Party (PT), for backing the tough monetary policy of Henrique Meirelles, his steely central-bank chief, and the cautious fiscal stance of Antonio Palocci, the finance minister. But these stern policies paved the way for recovery.