Twenty-five years of democracy and political stability have allowed Brazil to make major strides in economic development. But the forces that provided much of the economy’s momentum during the past decade—an expanding labor force, credit-fueled consumption, and high commodity prices—are beginning to stall. Although it has become the world’s seventh-largest economy, Brazil ranks only 95th in the world for GDP per capita. Most households have experienced only modest income growth, while consumer goods are increasingly priced out of their reach. Having successfully cut its official poverty rate in half, Brazil now hasto deliver on the promise of what a middle-class life really means.
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