In a statement issued by the International Monetary Fund (IMF) website, Managing Director Rodrigo de Rato says that Brazil’s decision not to renew the arrangement with the IMF reflects the positive situation of the Brazilian economy.
The note says that Brazil has overcome the instability of prior years, reaching “impressive results, generally ahead of expectations.”
Rato emphasizes Brazil’s GDP (gross domestic product) growth of over 5% in 2004, the highest in 10 years.
He also mentions the country’s external performance, fiscal balance, public debt and inflation reduction. According to him, these factors bolstered confidence in Brazil.
The IMF Managing Director also says that the country’s international reserves are at a comfortable level, and that a consistently strong fiscal performance is responsible for reducing the public debt and preserving macroeconomic stability.
Brazil has already made many reforms, and others continue on the Brazilian government agenda, especially the social ones, which are welcomed by the IMF, the statement says.
Rato concludes that Brazilian authorities and the IMF will continue the “close and cooperative policy dialogue” between them.