As it happened in the USA, then Europe, the Bricks are about to get their turn in financial distress. Aivars Lode
The Western Hemisphere’s economic darling may be losing its shine.
Brazil’s economy has slowed considerably in recent months, according to the latest statistics. Government figuresshow g Brazil’s economy grew only .2 percent in the first quarter of 2012, compared to a meager 1.4 percent in the fourth quarter of 2011.
In a report issued Monday, Well Fargo pinned much of the problem on a plunge in the South American giant’s farming and cattle industries, as a weakening global economy cuts into demand. Manufacturing continues to grow, but the gains are slowing. The best performer in Brazil: government spending, which increased 1.5 percent. That means the public sector is preventing an even worse slowdown. Consumer spending grew by 1 percent in the first quarter.
A slowing economy has sent the real down 21 percent against the dollar since the summer — from 1.58 per dollar to $1.98, according to Wells Fargo.