To raise incomes and living standards, Brazil must accelerate productivity growth. Building new connections with the rest of the global economy could provide the opening to do just that. A McKinsey Global Institute article.
More than 25 years of democracy and political stability have allowed Brazil to make major strides in economic development, including cutting its official poverty rate by half. Yet 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.