Brazil posts higher Oct budget surplus

Brazil posted a higher-than-expected public sector primary budget surplus for October, putting it well over its full-year surplus goal thanks to strong growth and controls on public spending, central bank figures showed on Friday.

The month's surplus of 8.2 billion reais (US$3 billion) was up from a surplus of 6.96 billion reais in October 2003. Economists had expected an October primary budget surplus of 6.6 billion reais.

The accumulated surplus for January to October stood at 77.97 billion reais or 5.59 percent of gross domestic product -- more than 6 billion reais above a full-year goal agreed with the International Monetary Fund.

Brazil's center-left government raised its full-year primary budget surplus target to 4.5 percent of GDP in September after economic growth hit an eight-year high in the second quarter."The chances are that they will get more than 4.5 percent," said economist Mauro Schneider at ING Bank in Sao Paulo.Brazil must post a primary budget surplus of at least 4.25 percent of GDP as a condition of its current $40 billion IMF loan.

(From Reuters, November 26, 2004)

__________