"Brazil is the country of the future, and always will be," says an ironic quip. And the skeptics are right now that the Brazilian economy is experiencing a sharp slowdown. Just two years ago the economy was growing at 7,5%, but 2011 saw the rate drop to 2,7%, and the economy hasn't really recovered since.
But some argue that the current hiatus will be short-lived and growth will be strong in the coming years. Indeed, in ten years Brazil will be able to unseat Germany and take fifth place in the world GDP hit parade. Brazil's richest man, Eike Batista – admittedly, the source is biased – goes further and sees Brazil ranked third in 2030. These projections have demographics on their side – the percentage of the working-age population will reach 70%, much more than the average of other countries – and a continuous flow of foreign investments, attracted by the country's potential. Brazil has a good and diversified manufacturing base, and is also on the way to becoming an 'oil country', with huge submarine fields discovered off its coasts.
The challenge is great, and the obstacles many. First of all the 'Brazil cost', i.e. the cost linked to bureaucratic and regulatory obligations.
