RIO DE JANEIRO, Nov. 19 (Xinhua) -- Moody's Investors Service predicted on Thursday that Brazil's gross domestic product would register a growth rate of 0.5 percent to 1 percent in 2009 and 4.5 percent in 2010.

    Brazil's economy showed stronger growth in the third quarter of 2009 and has become one of the leading forces in the global economic recovery, said the international rating agency, adding that Brazil currently has the best economic performance in South America.

    In the second quarter of this year, Brazil registered a growth rate of 1.9 percent compared with a quarter earlier, after having reported negative results for two quarters when the financial crisis hit the country hard.

    In late September, Moody's granted Brazil an investment grade, recognizing its economy's capacity to absorb shocks and recover from the financial turmoil.

    The country's industrial production is gaining strength with the growth of domestic demand offsetting a decline in the international market, said the agency.

    Moody's also noted that Brazil's inflation rate has so far remained below the 4.5 percent target set by the central bank for this year, and that the recently-established Tax over Financial Operations (IOF) over foreign investments did not stop capital from entering Brazil.

Special Report:  Global Financial Crisis