Brazil’s economy benefits from an almost perfect commodity mix, a rapidly rising consumer base and a government committed to improving the country’s investment climate, suggesting that it will continue to grow at a robust pace over the coming years. However, a reluctance by monetary policymakers to tighten credit conditions, for fear of hurting growth and sending the currency higher against the US dollar – thus hurting exporters – has resulted in signs of overheating for the economy. In early June, we recorded a podcast looking at the risk of Turkey’s economy overheating. Today, Mark Schaltuper, Business Monitor’s Head of Europe Analysis, asks Richard Hamilton, Head of Latin America Analysis, if we should now consider a similar risk scenario for Brazil…
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