Brazil’s Recovery Gains Steam in 2nd Quarter

Brazil’s second-quarter economic growth beat expectations as Latin America’s biggest economy continued its recovery from two years of economic stagnation and a deep currency devaluation in 1999. Gross domestic product--which measures the total output of goods and services and is the broadest gauge of an economy’s health--grew by 3.9% from the year-earlier period, fueled by strong industrial and agricultural output, Brazil’s National Statistics Institute said. Surging car and television sales showed the rebound was finally reaching the wallets of Brazil’s 165 million people. The bright economic outlook even boosted President Fernando Henrique Cardoso’s popularity rating to its highest level in 18 months in a poll released this week. Economists had expected GDP growth of 3.3% to 3.5% in the quarter.