FACTBOX-Key political risks to watch in Brazil

Raymond Colitt – Reuters, 10/03/2011

*It is worth noting that Rousseff’s approval rating remains very high at about 70 percent – and it rose again just last week, despite signs the economy is slowing. – Brian Winter, Chief Correspondent, Brazil, Reuters

President Dilma Rousseff’s biggest challenge in coming months will be to deal with growing discontent over persistent inflation and austerity measures as the fallout from global financial turmoil hits Latin America’s largest economy.

Rousseff will have to face rebellious allies wanting more government spending and a greater say in policies as well as unions demanding higher wages. Other challenges include rising inflation, currency volatility, and resistance to long-term structural reforms.

A FADING ECONOMY

Compared to many developed countries, Brazil’s expected 3.5 percent economic growth this year looks attractive. But after the boom under former President Luiz Inacio Lula da Silva, that culminated in last year’s dizzying expansion of 7.5 percent, it feels disappointing.

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