Like football fans, investors had high hopes for Brazil. The BRIC economy enjoyed annual GDP growth of 3%-6% between 2004 and 2008, and after the crash, it bounced back, with 7.5% growth in 2010.
The pace has since slowed, and investors have been grumbling about the policies of President Dilma Rousseff, successor to the popular reformist ‘Lula’ da Silva. On her watch, inflation has crept above the official 6.5% target and wage rises have outpaced productivity. But the former left-wing guerrilla’s poll ratings have remained high – meaning the chances of a new government in October’s elections appears low. Could Brazil’s humiliating 7-1 defeat in the World Cup semi-finals be a catalyst for change? Some investors think so. Aberdeen Asset Management senior investment manager Fi...
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