September 1, 2011
by Vincent Bevins
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,
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?