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What Will It Take to Get Brazil Back on Track?
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What Will It Take to Get Brazil Back on Track?

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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The proverbial phrase “when it rains it pours” captures Brazil’s woes today. As it prepares to host the 2016 Summer Olympics in Rio de Janeiro in August, the country is wracked by worsening political uncertainty, a severe recession that has caused its economy to shrink nearly 4% last year (with similar projections for this year), and the Zika virus outbreak that originated on its soil in April 2015 and has since spread to Central America, South America and the Caribbean. The political uncertainty is rooted in a $2 billion corruption scandal involving the state-owned oil firm Petrobras. It now threatens Brazil’s president, Dilma Rousseff, with impeachment. The country’s economy has already been weathering export declines in the past two years, thanks to the slowdown in China , Brazil’s biggest trading partner. Alongside, its currency has been battered by a strong dollar, and capital inflows have been steadily negative.…

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