Brasília, June 9, 2004 (Agência Brasil) - "The numbers confirm the significant revival of economic growth, initiated almost a year ago. Following the difficult process of macroeconomic adjustment, which occurred for the most part during the first half of 2003, fortunately we can now reap the positive results." The Minister of Finance, Antônio Palocci, transmitted this optimistic message to a group of entrepreneurs assembled yesterday (8) in Brasília, at the seminar "Agenda for Sustainable Infrastructrure Development," sponsored by the Brazilian Association of Infrastructure and Basic Industries.

According to the Minister of Finance, "this is the correct moment to activate investments in infrastructure and the expansion of the country's basic industries."

Palocci informed that exports through May were up 25% this year, compared with the same period last year. In his view, the success in foreign sales is due not only to the evolution of agribusiness and various other Brazilian manufacturing sectors, but also "to the decreased volatility of the exchange rate and the introduction of various steps to made exportation less bureaucratic, providing greater agility to the sector and modernizing customs policy."

Palocci stated that domestic consumption has also been contributing to growth. He informed that retail sales rose 7% this year through March, compared with the same period last year. In addition, he said, sales of non-durable consumer goods in May were up over 4% in relation to May, 2003.

The Minister also said that industrial policy, focused on technological innovation and reducing the cost of capital, will allow the country to attain a new and better level of efficiency and productivity, assuring the conditions necessary for Brazil to face the challenges presented by its growing insertion in the world's commercial markets.

Reporter: Jorge Wamburg
Translator: David Silberstein