USA Today/The Associated Press, 06/12/2012
RIO DE JANEIRO – For more than a decade, Brazil has been one of the developing world’s great hopes, outpacing the growth of Western Europe and the United States. Many even predicted it would soon become an economic superpower.
Now, as the world economy teeters, Brazil is looking less like a global golden child and more like a Latin American laggard.
Prices for exported commodities, such as iron ore and soybeans, are drooping due to concerns over Chinese growth. Economic turmoil in Europe is cutting into demand for manufactured goods such as aircraft. Meanwhile, Brazil’s still-strong currency makes its exports less competitive. Investors are pulling billions of dollars out of Brazil and other developing countries.