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A Breakdown of Trust; Brazil's Economy
Article from Bulletin/Magazine
The Economist (http://search.proquest.com/) vol. 405 no. 8814 (Dec. 2012)
Perpustakaan Pusat (Semanggi)
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Lihat Detail Induk
Dilma Rousseff was elected Brazil's president two years ago. The country's economy was booming. It then ground to a halt and is now struggling to recover. Rousseff has recognised the need to improve competitiveness. Her economic team says its aim is to prompt a supply-side, investment-led recovery. In the past 15 months the Central Bank has slashed interest rates by 5.25 percentage points, to 7.25% (only two points above inflation). That has helped to weaken the currency and help manufacturers. The government has cut payroll taxes for industry (but not most services). It is also slashing electricity tariffs and inviting private operators to upgrade airports, roads and railways. Rousseff's hope seems to be that full employment and rising real wages will be enough to secure her a second term in 2014. But these depend on renewed growth.
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