A view of Sao Paulo in 2003. Demotix/Giuseppe bizarri.Ssome rights reserved.
The economic situation in Brazil is far from satisfactory. After dealing with (hyper) inflation in the 1990s and income distribution in the 2000s, the next hurdle is how to grow again. And this time Brazilian society cannot avoid making tough decisions to pledge a better future. If there is no action, the current (long) recession will very rapidly become a fiscal crisis. The exchange rate will depreciate further (and fast); interest rates will soar; investors will lose trust in Brazil and the rating agencies will have, yet again, to degrade the country. Is there a way out? Yes. But it is a difficult one.
Postponing the tough decisions
