Country Report: Brazil.

The article presents a political and economic outlook from 2007-2008 in Brazil. Luiz Inácio Lula da Silva of the leftist Partido dos Trabalhadores (PT) continues to enjoy the record levels of popularity and very favorable economic conditions. The monetary authority cut the benchmark of the Selic rate by a further 50 basis points in July 18, 2007. The current-account surplus is forecast to narrow as import growth outweighs export expansion.