Things aren’t looking pretty in Brazil. BBC reports:
Brazil’s deficit jumped in November to one of the highest levels on record as state finances came under increasing strain amid a deep recession.
The public sector deficit – the difference between what the government spends and what it receives in revenues – rose to 19.6bn reais ($5.1bn).
This was worse than expected and much higher than October’s 11.5bn reais.
The big worry is that President Dilma Rousseff, facing impeachment proceedings and some of the lowest poll ratings in Brazilian political history, may lack the strength or the will to rein in the leftwing of her party. A spurt of populist economic measures in the present circumstances could inflict heavier economic damage than expected. Smart Brazilians and foreigners have already been tiptoeing away from a troubled economy and weak leadership. Things could get even worse.