Foreign investors are fleeing Brazil. The expectation of an increase in the US interest rate, added to the aversion to the risks of investing in a country where the government is taking great steps towards a fiscal crisis, produced a flight of funds dedicated to Brazil.
According to the newspaper O Estado de S.Paulo, Brazil's participation in funds dedicated to emerging markets dropped from 16.4% in 2011 to the current 5.1%.
For the poorest Brazilians, the scenario is terrible. Inflation reaches 40% for this portion of the population and the level of unemployment has practically doubled. According to DIAP, Brazil is on the way to stagflation.
