Brazil’s economy stalled in May from the prior month but topped pessimistic market forecasts, official data showed, signaling that the world’s No. 6 economy could be on even footing to resume growth in coming months after massive government stimulus (Reuters).
The once booming South American powerhouse of Brazil will grow less than the U.S. this year. The U.S. economy is forecast to grow by around 2 percent in 2012, the best of the advanced economies. Meanwhile, Brazil’s GDP momentum has completely stopped, making it the worst performer of the big four emerging markets, the BRICs (Forbes).
Brazil has cut its key interest rate to the lowest rate ever in a move to kickstart its sluggish economy. The central bank lowered the nation’s benchmark Selic rate from last month’s 8.5 percent to 8.0 percent, saying the risks of an inflationary spike are “limited” (Washington Post
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