Brazil’s economy appears to be on a stronger footing than most observers had believed, official figures showed on Tuesday, with growth in the third quarter beating expectations and previous readings going back to last year being revised higher. The faster growth so far this year and over the course of 2018 shows that Latin America’s largest economy steered clearer of recession than previously thought, and is accelerating into the year end.

“The latest figures and revisions are a much-needed boost to the economy, but above all, reflect the effectiveness of the government’s economic program and the central bank’s monetary policy,” said Jason Vieira, chief economist at Infinity Asset Management in São Paulo.

José Francisco Gonçalves, chief economist at Banco Fator in São Paulo, agreed: “This is positive for the government’s reform agenda, but not so good if you expected interest rates to be heading below 4.5%.”

Source: Reuters