Brazil stimulus

Brazil’s government is making the right noises. But now for the hard part, how to revive animal spirits?

In the latest move to tackle the country’s competitiveness problems, the government announced a R$54bn ($26bn) investment package in Brazil’s creaking port infrastructure. Read more

Brazil currently deserves its initial in the Brics acronym, and not just because it lost the Olympics football final to Mexico. Its economic performance is also a “B”. Growth is limping along at less than 2 per cent. Only two years ago, Brazil was scoring A-grades with a 7.5 per cent growth rate.

Hence the much-hyped stimulus package, with its centrepiece reportedly some R$100bn ($50bn) of infrastructure concessions, to be announced later on Wednesday. President Dilma Rousseff, a technocrat to her fingertips, wants to improve her grades. As ever, though, the package’s big number spells both good and bad news. Read more