(Adds details on risks to economic recovery; analyst quote)
By Walter Brandimarte
NEW YORK, Aug 25 (Reuters) - Brazilian Central Bank President Henrique Meirelles on Tuesday fueled speculation that he could seek election to public office next year, saying his decision on whether to run partly hinges on the performance of the country's economy.
Latin America's largest economy is "already in a recovery process," Meirelles told investors in New York, although he added that there are still some risks related to a possible derailment in the recovery of developed economies.
"I haven't taken a decision (on whether to run) yet. One of the factors I'll be considering will be the performance of the Brazilian economy," Meirelles said.
Meirelles, who is widely expected to run for governor of his home state of Goias in general elections in 2010, said he could join a political party by September to have "his political rights in order," though that would not definitely mean he would be a candidate.
"Since I'm talking to journalists specialized in financial markets, I can say by analogy that this would be a simple options contract," he said, referring to a possible affiliation to a political party.
"Politicians in Brazil have another analogy: that would be like getting your passport, which does not mean you are going to travel, but it is good to have one in your pocket in order to gain access to your basic rights," he added after a presentation to investors in New York.
Meirelles, the longest-serving central bank president in Brazil, reiterated that he will decide whether to join a political party by the end of September and whether to run for elections by next March.
"If he joins a party in September he is basically saying that he will run for office," said Pedro Tuesta, a senior Latin America economist with 4Cast economic consultancy in Washington, D.C.
Earlier this month, President Luiz Inacio Lula da Silva stood by Meirelles' side in the central bank chief's hometown of Anapolis and said he would make an exceptional administrator for Goias.
Brazilian markets have been fretting about the continuity of monetary policies in Brazil if Meirelles leaves as head of the central bank, which is not formally independent from the government.
Meirelles said it is "normal" for markets to price in some future uncertainty, but he reiterated that Lula is committed to economic stability.
"If I became a candidate I believe we would have a continuity process at the central bank," he said.
ECONOMY RECOVERING
Meirelles told investors that Brazil's economy is on a recovery path, with market forecasts for gross domestic product growth in the 2009 second quarter ranging from 4.0 percent to 8.0 percent, at an annualized rate.
For the whole year, the market consensus is for GDP to contract by 0.3 percent, but estimates are being constantly revised higher and should become slightly positive by the end of the year, he said.
For 2010, Meirelles said, the most accurate economists already see Latin America's largest economy expanding above 4 percent.
The central bank expects the economy to grow 0.8 percent in 2009, but has no growth forecast for 2010 yet.
Meirelles said Brazil has been recovering faster than developed countries because of its growing middle class, which already accounts for 53 percent of the total population.
Maturing investments are also increasing Brazil's industrial output capacity, which means the country will be able to sustain growth at higher rates in 2010, he added. (Editing by Leslie Adler)