RIO DE JANEIRO - Brazil's economy increased 7.5 percent in 2010, a record high since 1986, authorities announced Thursday.

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Gross domestic product (GDP) of the Latin America's biggest economy reached 3.67 trillion reais ($2.21 trillion) in 2010, according to the figures released by the Brazilian Institute of Geography and Statistics (IBGE).

It is the highest GDP expansion registered in Brazil since 1986, the IBGE said, attributing the high growth rate to the increase of domestic demands in the country.

Industry, which expanded 10.1 percent in 2010, was the most benefited sector from the economic recovery.

The IBGE said among the countries which had already announced their 2010 GDP results, Brazil had the third highest expansion after China and India.

Brazil's economic growth surpassed countries such as South Korea, Japan, Germany and the United States and also exceeded the five-percent world average GDP growth.