Wednesday, February 25, 2009

Brazil: Nowhere to Go but Down

A cargo train at low speed but without breaks and about to wreck. That's how we can describe the economy of Brazil right now. People look at the current data and think that the country is doing fine, but the downturn is unstoppable. Here's a summary of the article from the Economist Intelligence Unit ViewsWire:
With global economic conditions deteriorating further and signs that Brazil’s domestic economy is grinding to a halt, the Economist Intelligence Unit now expects the country’s GDP to contract, albeit modestly, in 2009. This will occur despite government stimulus measures and monetary easing. Although we currently foresee a recovery of growth in 2010, this year’s severe downturn and accompanying rise in unemployment nonetheless will complicate presidential politics, reducing the incumbent party’s chances of being returned to power in next year’s elections.

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