by Vincent Bevins
End of an Era?
Sep 1, 2011
Brazilâ€™s economy has had a good run, but analysts are readying themselves for tougher times ahead. Can the government and monetary authorities make a difference?
It would be an understatement to say that Brazil has had a good decade. High prices for its commodities, stable governance and the unleashing of long-dormant potential have led to some of the best economic indicators in living memory. The country grew at 7.5% last year, incomes are rising even more quickly, and unemployment is at an historic low.
President â€œLulaâ€ da Silva finished his term last year with some of the highest approval ratings in the world, and his hand-picked successor, Dilma Rousseff, cruised easily to victory. It would be very optimistic to expect any government to undertake deep structural reforms in such a situation. If it isnâ€™t broken, why fix it?
Yet the countryâ€™s success story is losing some its shine. There is a growing consensus that Brazilâ€™s ability to cruise along on auto-pilot may be coming to an end and what...
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