Brazil economy sees growth surge

President Lula to focus on economy ahead of October elections

Brazil's economy grew at an annual rate of 5.8% in the first quarter of the year, boosted by a construction boom and high world food prices.

Latin America's largest economy is rich in resources and is benefiting from a commodity and farming boom.

Growth has also been fuelled by consumer spending as Brazilians enjoy rising incomes and cheaper credit.

But analysts believe Brazil may not be able to sustain its economic growth in the year ahead.

Official gross domestic product (GDP) data showed industrial firms fuelled growth, expanding 6.9% compared with the same period last year, while the services sector grew 5%.

But analysts believe growth may slow towards the end of the year after the central bank raised rates last week to curb rising inflation.