Brazil has been on the top of the list of emerging markets for the last years. Is this going to change from now on? In 2013, we certainly had negative signs: weak growth, inflation, and political interventions in state enterprises. Concerns with the advancement of public spending and doubts about the fiscal discipline of the government are hard to ignore. The credit rating agency Standard & Poor’s revised the outlook of Brazil’s sovereign rating in foreign currency from “stable” to “negative.” So is the dream over?
Here are some facts that may have an impact in Brazil’s near future.
Riots rocked numerous cities in Brazil. What was remarkable was the spontaneous and non-partisan manner of the manifestations.
Catholics from around the world came to Rio for the World Youth Day. 355 thousand pilgrims from 175 countries created an atmosphere of joy and peace of mind that impregnated the city and non believers. Nevertheless, Pope Francis got stuck in traffic.
Lula’s closest collaborators went to jail. A change in the impunity paradigm “white collars don’t go behind bars”. From now on they will?
The international press changed the tune about Brazil from positive to negative. The Economist cover of the Christ failing to launch is emblematic.
Eike Batista, once the hero of modern Brazilian entrepreneurship is now on Forbes the biggest career crashes list of 2013.
High inflation is back and the Dilma administration is surprised.
The Brazilian government put in place a new round of auctions, including airports and roads.
Will we be ready for the World Cup? Not sure. The secretary general Jerome Valcke suggested that Brazil needed a “kick up the ass” because of delays in infrastructure projects.