Brazil's Economy Continues to Falter: Inflation Soars, Currency Plunges

After the ongoing negative economic news associated with Brazil, it could be thought the worst is over and the country is close to a rebound. That's not the case though, as the vast majority of data concerning the country remains bad, or is getting worse.

The major concern for some time has been the probable loss of its investment grade rating, which when coupled with numerous other weaknesses, such as the plunge in value of the real versus the U.S. dollar (now at a 12-year low) and the increase in costs of public transportation and utilities, creates a scenario for country that will weigh on much of its economy, market and companies with exposure there.

The lending rate in the country stands at 14.25 percent, the result of efforts to rein in inflation.

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