So B should be removed from the BRIC...
. But that isn't what investment banks and rating agencies are saying.
GDP per capital growth rates: Brazil fell behind almost everyone in the past, but now is picking momentum are growing more than several other LA countries. Some other countries financed their grow with public spending (or manipulating indexes, i.e., Argentina) and now are in trouble. Some are doing ok.
Inflation: check the link below:
Inflation in emerging economies | An old enemy rears its head | Economist.com Actually, Brazil has been praised for the Central Bank independence and for keeping real interest rates positive. Particularly, I believe this is the second best alternative; since the inception of the inflation target by the Central Bank, I've been saying that the Government should cut spending to slow things down instead of increasing interest rates. Guess what, for the first time ever, I heard the PT government to admit it (tough don't believe they will do it)... They already increase the primary surplus (exclusive of interest rates payments) to an extra 0.5%. Also, for the first time ever, Brazil had a nominal surplus (inclusive of interest rates for government debt). I don't thing this will repeat again soon, but that is the last condition for Moody's to upgrade Brazil to investment grade.
It should be noticed yet, that increase in food prices affect way more inflation in poor and middle income countries, because food weights more on the CPI.
Custo Brasil: that is right, there are lots to do yet; I could write a long list by myself. Some of them I don't see any possibility that this government will fix it. But I'm talking in a context. Are things getting better or worst comparatively with Brazil and others countries few years back. In my humble opinion, clearly better.
Again, some of you may not have noticed, but there is a huge financial crisis out there + a food shortage that is causing food prices skyrocket. Despite of that, Brazil is relatively well, and that is the point of the article mentioned before. Goldman Sachs is saying that actually the BRIC (with B) economies are gaining ground, unlike the past when recession used to be the outcome.
I could go on, but I don't think I need. Everyone has his own impressions, and that is ok for me.