There's no way around it: Brazil is a disaster
Rousseff's "new economic matrix" policies, which pursued a cut in interest rates and increase in fiscal spending crushed business confidence.
With these measures also dragging down consumer confidence.
Retail sales, as a result, have fallen significantly with confidence and real income falling.
And real incomes have been falling as inflation has risen.
The unemployment rate is soaring and Deutsche Bank expects it will average 9% in 2016, up from 4.8% just two years earlier.
And as the real has fallen in value against the dollar, bets that Brazil will default on its debt — reflected in the increased price of a five-year credit-default swap — have gotten more expensive.
Popular Right Now
Popular Keywords
Advertisement