Arminio Fraga: A price to pay

Arminio Fraga: A price to pay

Brazil Economy & Policy Corporate & Sovereign Strategy

By Taimur AhmadFor more than a decade, a credit-driven consumption boom helped fuel Brazil’s economic expansion, swelling the ranks of its middle class and lifting the hopes of a nation. It was a story on which many pinned their hopes – not just households, but companies and investors, too, drawn in by what seemed an ever-expanding marketplace. But that story began to fray two years ago, amid sharply slower growth. Brazil’s economy grew by only 0.9% in 2012. Although it is expected to expand by more than 2% this year, it’s still a far cry from the 7.5% growth of three years ago. Consumer confidence has also since plummeted, as concerns grow over rising prices and the higher interest rate

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