Can it get any worse for Brazil? Last week the government lowered the country’s growth output from a modest gain to a contraction of 1.49 percent. Unemployment, no doubt under-reported, is at 6.9 percent in June and rising.
Dilma Rousseff, the country’s president, who had previously been a big spender, is now pushing austerity to maintain the country’s credit rating.
To little avail. She is on a collision course with Congress, which wants to raise wages and spend even more. Labor unions are threatening ongoing strikes.