Brazil's stalled growth is causing high inflations. Despite political opposition the countrys president, Rousseff, is cutting spending and raising taxes in order to lower the deficit. The article mentions another issue that I wrote about in a blog entry: The Petrobras corruption scandal. The currency is also falling to a low. How will Brazil recover from this “trip?” Will they be able to move on and regain their growth?
http://www.bbc.com/news/business-31744918
1 comment:
It would be difficult for Brazil to recover from this "trip" because mostly of the corrupted government. The tax raise plus high inflation is not a good combo either. the whole situation lowers consumers' confidence as well as foreign investments. They should sort out their government first then try some tax break policy to induce FDI.
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