On the ground in Brazil: Countercurrents in the Amazon

BRAZIL

Gary Greenberg, head of emerging markets at Hermes Fund Managers, gives his forecast for the LatAm giant.

Having just returned from a trip to Brazil, it is clear this is a country of contrasts. Investors are depressed, but the man on the street is elated. It has also emerged the former President presided over an epic level of corruption, even by Brazilian standards, which says something. Yet the current President, from the same party, is clean. The contrasts do not stop there. Assuming government figures are accurate, which they may well not be, GDP is stagnant. However, the country is at full employment. Exports are flagging, but reserves are high ($380bn). Inflation Inflation appears...