Reuters quoted Mr Guido Mantega finance minister of Brazil as saying that Brazil's economy should post growth of around 1% in 2009 and gain steam in the coming years as the country emerges faster and quicker than other nations from the downturn in global markets.

He said that the government will continue to use public banks to boost credit in the financial system, particularly loans to small and medium sized companies in a bid to stoke growth. Federally owned lenders such as Banco do Brasil and Caixa Economica Federal have expanded their loan portfolios at a faster pace than private-sector firms in recent months as the government sought to limit the effects of a global credit crunch in Brazil’s economy.

Mr Mantega added that "GDP growth in 2009 will be positive, but weak. New measures need to be taken to boost growth. Gross domestic product should expand 4% in 2010 and grow faster in 2011, when it is expected to rise 5%."

He further said that global growth will tread water for about two or three years, with most of the expansion coming from so called BRIC economies of Brazil, Russia, India and China.

(Sourced from www.reuters.com)