CHICAGO--(BUSINESS WIRE)--Adolfo Laurenti’s latest research note examines how one of the former “BRIC” countries, Brazil, is missing some steps after advancing in quick time for years. Our deputy chief economist says, “The ‘momento magico’ is gone; from now on Brazil faces an uncertain path to regain lost momentum.” He refers to better times for Brazil, back in 2008 when the popular, then-president Lula da Silva spoke about, “the ‘momento magico,’ the magic moment of the country, a characterization that would remain true for a few years to come.”
Brazil needs to do more than recapture a little magic. Laurenti warns that, “Lack of infrastructure limits the growth potential, resulting in an economy prone to inflationary surges.” Partly as a result of the slowing commodity boom around the world, prospects for Brazil have been downgraded sharply. “We now expect GDP growth to chug along at 2.6% in 2013 and barely reaccelerate to 3.2% next year, with significant headwinds for consumer spending and industrial production, a far cry from the 4% to 5% range that we forecast just six months ago. “
For more on why Brazil’s economy is slipping off the fast track, more so than another BRIC country, specifically China, read the latest Themes on the Global Markets newsletter, or watch a video. The August 2013 issue of Themes on the Global Markets, as well as archived issues, can be found at mesirowfinancial.com.
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