March 12, 2014
With the World Cup in June and July and a presidential election in October, many Brazilians aren’t thinking beyond 2014. But next year is likely to be memorable for all the wrong reasons in Latin America’s biggest economy.
President Dilma Rousseff, or whoever wins the election, will have to make deep budget cuts, raise taxes and take other painful steps to address Brazil’s growing financial imbalances.
The fallout will likely be more damaging than many investors anticipate, resulting in a fourth straight year of disappointing growth – a big fall back to earth for a country that last decade was one of the world’s most dynamic emerging markets.
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