Kenneth Rapoza – Forbes, 06/24/2012
Brazil is not going to escape the onrushing collapse of the developed economies, warns the Central Bank of Central Banks, known as the Bank for International Settlements.
In its 214 page annual report released over the weekend, BIS said that Brazil and India, in particular, would suffer an accentuated decline in economic growth due to the problems in the Western powers, most notably in Europe.
At this point it is hard to imagine Brazil’s economy growing any less. It grew at just 0.2 percent in the first quarter and the Central Bank shows that seasonally adjusted growth over the last 12 months was under 2 percent. Brazil is already at stall speed, and historically low interest rates of just 8.5 percent are not helping.