São Paulo, November 18, 2002 (Agência Brasil - ABr) - Guido Mantega, the Workers' Party (PT) economic advisor, said that he believes that part of this year's inflation will be transferred to next year, but "it is perfectly controllable." According to Mantega, who spoke at the seminar "Business Round-Up - Brazil under New Management," at the American Chamber of Commerce, in order for control to prevail, it is necessary that confidence in the country grow, that interest rates fall, and that the Brazil Risk factor decline as well.

He also asserted that the Brazilian economy reacts more quickly than in other countries. He pointed to the United States, where the decline in interest rates should only have an impact after seven or eight months.

According to Mantega, the fact that Brazil registered little growth in 2001 and 2002 provides space for "growth almost by inertia" next year. (DAS)