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Brazilian Economy Slows in Third Quarter

Brazil's booming economy cooled slightly in the July-to-September period but still advanced 6.7 percent compared to a year ago.

Latin America's biggest economy grew by one-half of a percentage point in the third quarter compared to the April-to-June period. That was down from the 1.2 percent gain in the second quarter.

Analysts said that the slower growth rate stemmed from higher interest rates on borrowing and the expiration of tax cuts on consumer goods. The third quarter growth in Brazil -- the world's tenth largest economy -- was the slowest since it emerged from the world economic slowdown in the April-to-June period of 2009.

Major emerging economies throughout the world, such as those in Brazil, China and India, have been growing rapidly. By contrast, established economies in the United States and Europe have struggled to regain momentum in the aftermath of the world recession and have grown at a much slower pace, if at all.

Brazil's growth has been fueled by strong domestic consumer spending, up 5.9 percent in the third quarter compared to the same period in 2009. One analyst described the overall Brazilian economic growth as "very positive."