Ouch.
Brazil is smarting from its 7-1 defeat to Germany in the semi-final of the
World Cup. Dilma
Rousseff, the country's president, will now be regretting
tying herself so closely to the team's campaign. Off the pitch though, things
have been more of a success with the organisation of the cup beating the -
admittedly low - pre-event expectations. The economy faces problems as serious
as those of the national football team, with a scoreline of 1% GDP growth and
close to 7% inflation. This is partly due to a fall in iron ore prices, but
most of the blame should go to erratic policymaking.
Brazil is the latest of the big emerging economies with elections this year (last week I talked about the Indonesian presidential election, which thankfully looks to have been won by the competent Joko Widodo). The EIU has Dilma as the favourite to win, and she is trying to push the focus onto social issues to avoid scrutiny of the current woeful state of the economy. Regardless of who wins in October, it will be a while before Brazil fulfils its potential.
Do you think Brazil deserves its place in the BRICS? Let me know on Twitter @Baptist_Simon or via email on simonjbaptist@eiu.com.
Brazil is the latest of the big emerging economies with elections this year (last week I talked about the Indonesian presidential election, which thankfully looks to have been won by the competent Joko Widodo). The EIU has Dilma as the favourite to win, and she is trying to push the focus onto social issues to avoid scrutiny of the current woeful state of the economy. Regardless of who wins in October, it will be a while before Brazil fulfils its potential.
Do you think Brazil deserves its place in the BRICS? Let me know on Twitter @Baptist_Simon or via email on simonjbaptist@eiu.com.
Best regards,
Simon Baptist
Chief Economist and Asia Regional Director
Simon Baptist
Chief Economist and Asia Regional Director
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