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Brazil
Report

Brazil

Country Report; March 2014

The Economist Intelligence Unit
EIU, 2014
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Editorial Rating

8

Qualities

  • Comprehensive
  • Analytical
  • Overview

Recommendation

President Dilma Rousseff will likely win soccer-mad Brazil’s next election, albeit through a political penalty shoot-out. With little chance of the fiscal changes needed to restore consumer and investor confidence, Brazil will experience weak economic growth in 2014, despite hosting the FIFA World Cup tournament. Rousseff’s administration scored an own goal through populist economic policies and is paying the penalty in terms of growth, but it has an opportunity to even the score after the election. getAbstract cheers this Economist Intelligence Unit report for how ably it fields Brazil’s complex political economy.

Summary

Brazil’s economy will grow by 1.8% in 2014, down from 2.3% in 2013. Estimates suggest GDP growth will pick up marginally in 2015 and rise to 3.1% by 2018, but much depends on President Dilma Rousseff’s resolve, or lack thereof, to tackle structural reform. She faces conflicting pressures: managing public demand for increased spending on government services and boosting economic activity while controlling the expanding fiscal deficit. With the world’s media in town for the 2014 FIFA World Cup, this pressure may intensify. Rousseff is likely to win the October 2014 election...

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The Economist Intelligence Unit is an independent research and analysis organization.

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