SHE finally did it. Nearly a week after her intentions were trailed in the Brazilian press President Dilma Rousseff, who narrowly won re-election in October, named her new economic team yesterday. Joaquim Levy (pictured above, in focus) will be the new finance minister and Nelson Barbosa (right) the minister of planning. Alexandre Tombini (left) keeps his post at the head of the central bank. As Bello explains this week (in a column written just before the appointments were made official), they portend a big change from the course Ms Rousseff pursued during her first term.
Brazil’s GDP report today underscores just why change is needed. The economy grew a negligible 0.1% in the third quarter of 2014, half the expected rate. After two consecutive quarters of shrinking output, the growth in the third quarter ends a technical recession. But it was mainly due to a burst of pre-election spending by the government. As the new economic team tightens fiscal and monetary policy, growth is likely to fall back in the near...Continue reading
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