Brasília, May 28, 2004 (Agência Brasil) - The interim Minister of Finance, Bernard Appy, said that the increase in the Gross Domestic Product (GDP) is the result of the government's rigorous economic policy in 2003. Yesterday (27), the Brazilian Institute of Geography and Statistics (IBGE) announced that the GDP rose 2.7% in the first quarter of this year, compared with the same period in 2003, and 1.6% in comparison with the final quarter of last year.

Appy affirmed that the government maintains the economic growth target for this year at 3.5%. "To accelerate growth we are working on the macroeconomic agenda, a reduction in interest rates, and the microeconomic agenda of incentives to entrepreneurship," he declared.

In Appy's view, external crises, such as the rise in petroleum prices, should not affect the country's growth. "If petroleum prices stabilize at a very high plateau, this will be passed along to consumers. But it will in no way affect the economy's growth trend, since Brazil has ways to absorb cost shocks," he argued.

According to the acting Minister, in the second half of 2003 Brazil experienced a process that included an increase in the availability of credit, export and import growth, and a recovery in family consumption.

Reporter: Kelly Oliveira
Translator: David Silberstein