BY KENNETH RAPOZA
Brazil‘s economy is not the growth machine it was just three short years ago. In fact, the country that survived the biggest worldwide credit crisis in modern times is growing less than the U.S, the economy that basically started the crisis in the first place.
Gone are the days of fast and easy money. The core economies are still suffering, and that’s taken a bite out of Brazilian exports. China is slowing, and that’s Brazil’s biggest market.
Yet, Brazil is not an export driven economy. It’s a consumer economy, and a middle class one. Some 52 percent of the country are considered middle income by Brazilian census standards. But that doesn’t mean Brazil’s middle class live like a European middle class. Per capita income there is around $12,000 a year. Even with that, they love to spend. They’re doing so, though not as much as the government had hoped. Consumer spending rose ... Read More