By Thierry Ogier
Investor Report Brazil: Dangerous game
There are growing signs that all is not well with the Brazilian economy. A rapid increase in household indebtedness and a surge in credit growth have investors worried
Guido Mantega, Brazil's finance minister, has been piloting
policy in Latin America's largest economy for the past six
years. He likes referring to himself as a player who passes the
ball to his teammate, who then smashes it into the net and
scores - a kind of GDP catalyst.
But the Brazilian economy has faced an uphill battle in
2012, and the year may end without any goals at all.
Brazilian monetary and fiscal authorities had predicted a
long duration, low-intensity crisis in the eurozone. But this
has spread dangerously from the periphery to the core of the
single currency area. "The European crisis has proved even
stronger than we originally envisaged, even though it rather
looks like a long period of agony than a sudden heart attack,"
Mantega tells LatinFinance.
China's growth has eased - and commodity prices have started
to fall for the first...
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