Environment minister Izabella Teixeira said satellite imagery from the National Institute for Space Research showed 2,490 square miles of the Amazon was deforested between August 2009 and July 2010, a 14 per cent drop from a year earlier.
The institute said the area deforested is the smallest since 1988.
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Hide AdMs Teixeira said it was "the lowest deforestation level in the history of the Amazon and we are committed to (lowering it]."
The government credits better enforcement of environmental laws for the slowdown.