Brazil’s developing economy continued a trajectory of rampant growth over the last quarter, marking a significant upwards revision in economic forecasts to around 10% for the year 2010.

Gross domestic product (GDP) was up 8.8% on the same quarter a year previous – some 1.1% larger than many analysts had forecast. As a result of continuing strength across its core industries and the consumer bubble fueled by the rising Brazilian middle classes, economic expansion has been significant, putting Brazil in second place only to China in terms of the success of its economic strategy.

Extensive government investment in infrastructure and development, combined with a series of advantageous tax conditions to stimulate growth, have led to some of the most extensive growth figures in the world, and allowed prolonged economic prosperity as the Brazilian economy continues to emerge towards the front of the global stage.

With both unemployment and inflation low, the outlook for the short-term in Brazil remains strong, as the benefits of the aggressive growth is felt on public services and communities throughout the country.

But some analysts have forecast the potential for economic overheating, and have advised the Brazilian authorities to consider austerity measures in addition to tightening fiscal control to keep a curb on inflation. With the financial retreat poised and ready to start moving, it may well be the case that the economy faces more tight times ahead in a bid to prevent the onslaught of rampant inflation.