In Brazil, Economic Recovery Stalls

All signs suggest that Latin America's largest economy will continue to struggle well beyond 2015. Brazil's economy is already expected to contract this year, and problems such as rising inflation, high interest rates, corruption scandals and the political uncertainty surrounding Brazilian President Dilma Rousseff's administration are unlikely to disappear anytime soon. As these issues pressure Brazil's business and investment climate, they will likely delay any significant economic recovery until at least 2017. However, these same difficulties could motivate Brasilia to change its regulatory structure, ultimately improving the country's business climate and broader economic trajectory in the long run.