British magazine 'The Economist' says Brazil is Latin America's big success story

Cover of Bristh magazine 'The Economist'

The economic rise of Brazil is the subject of the cover, an editorial and a special 14-page report on British magazine The Economist.

Entitled "Brazil takes off", the editorial says the country appears to have made its entry on the world stage, marked symbolically by the choice of Rio as Olympic host in 2016.

The magazine says that, in 2001, the inclusion of Brazil in the emerging group ‘BRIC’ (Brazil, Russia, India and China) surprised many. Today, it proved correct, as the country has shown an enviable economic performance.

The Economist also claims that Brazil reaches more than other BRICs. "Unlike China, it is a democracy. Unlike India, has no insurgents, ethnic, religious or hostile neighbors. Unlike Russia, it exports more than just oil and arms, and deals with foreign investors with respect."

At the same time, the report warns that it would be a mistake to cover up the country’s weaknesses. Government spending is growing faster than the economy as a whole, but both private and public sectors have invested very little, planting a question mark over the growth forecasts.

Payroll of the federal government increased by 13% since September 2008. Social security and pension spending increased 7% over the same period, although the population is relatively young. Despite recent improvements, education and infrastructure remain behind China or South Korea, and in some regions, violent crime is still rampant.

Regardless of these problems, the article ends by saying that Brazil’s takeoff “is all the more admirable because it has been achieved through reform and democratic consensus-building. If only China could say the same.”