JUST two years ago, when Dilma Rousseff was elected Brazil’s president, the country’s economy was booming. It then ground to a halt and is now struggling to recover. Despite increasingly frantic official efforts at stimulation, the moribund creature grew by only 0.6% in the third quarter—half the number forecast by Guido Mantega, the finance minister. Most market analysts now expect GDP growth to be less than 1.5% this year and not much more than 3% next year. So much for the notion that the B in the BRICs is a speedy economy.
This is the first paragraph of The Economist’s article where they suggest that Dilma, the Brazilian president should fire Mantega and get rid of her economic team. In an article about the poor performance of the Brazilian GDP growth in the third quarter, the publication notes that the Central Bank will be tempted to respond to low growth with another rate cut, but to the magazine that would be a mistake.
For the “Economist”, instead of cutting interest rates, the government should redouble efforts to cut the “Brazil cost”, allowing the animal spirits of the private sector to come out. The magazine also says that she should resign Mantega, whose overly optimistic projections lost investor confidence, and indicate a new team capable of recovering business confidence is recommended.
Ps.: You all know that i’m a Brazil enthusiast, but i just can’t not talk about the bad things about this country, and unfortunately, the bad things usually overlap and obfuscate the good ones.