There’s been a lot of debate in beyondbrics around whether Brazil’s economy is blowing bubbles. Certainly the signs of a hot economy are everywhere. Mercer just judged São Paulo the 10th most expensive city in the world. Warehouses rentals here are now the fourth most costly in the globe. Prime office space in some parts of Rio de Janeiro cost more than those in New York. Consumer credit defaults are rising.

The FT decided to take the pulse of Brazil’s economy by visiting a poor neighbourhood of Salvador, in the booming northeast, and through interviews with prominent economists. The result? Brazil is doing well but consumers are beginning to look stretched and the country is too exposed to the vagaries of commodity prices. Brazil needs to increase productivity to make its economic miracle more sustainable. For the full story, click here.