Thursday, June 2, 2011

Trying to cool down

Brazil has been on the world's spotlight for the past few years. Everyone talking about the country and a lot of optimism inside and outside Brazilian borders. In November of 2009 The Economist published a special 14 pages report about the country and the cover of the magazine was the following:


The biggest reason for the optimism of the Brazilian population and foreign investors is a response for the growing economy. The Brazilian economy is now the world's seventh largest by nominal GDP, eighth largest by purchasing power parity and for the past few years is having an annual average GDP growth of over 5%.

Even though with all these positives surrounding the nation of carnival and soccer, the country still is considered a developing country because of its huge population that still lives in poverty, with no access to proper education and health system. Brazil is ranked 71 by its GDP per capita.

While dealing with reducing the gap between the rich and the poor, the country faces a new challenge: to hold down the economy. The country needs to hold the economy to a desired level of growth, to keep the Real from valuing too much and to keep the inflation low. Challenging issues for this booming economy.

Dilma Rousseff, the Brazilian president elected six months ago, has to be able to successfully deal with these difficulties without imposing measures that are too unpopular, in order to keep Brazil on the path of soon becoming a developed country and to keep her popularity high.



For more information:

Brazil's president

Dilma's first big test

The political wounding of Antonio Palocci, the president’s right-hand man, comes at an awkward time, when the battle to cool the economy has only just begun


http://www.economist.com/node/18774732?story_id=18774732

Source: economist.com

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