Country/Territory Report - Brazil.

The article presents a medium- and long-term economic outlook for Brazil. It states that the flexibility of Brazil's exchange rate system and the success in conducting monetary policy since the abandonment of the crawling peg in January 1999 make the long-term prospects for the Brazilian economy positive. Growth prospects for the country are seen to be constrained due to high domestic interest rates. Brazil has reportedly a sound industrial policy and remains a major force in the region.