Brazil Owes Its Meager Recover Rate To World Growth

Brazilian Central Bank president Ilan Goldfajn: Brazil is growing, in spite of itself. (Photo by ANDRESSA ANHOLETE/AFP/Getty Images)

Brazil’s GDP was supposed to grow 1% this year. Now economists are cutting it to 0.7%. And even that has more to do with the external picture than Brazil’s domestic economy, still reeling from back to back recessions.

Recently back from the G-20 meeting in Baden-Baden, Germany, Brazil’s central bank governor laid it out: Brazil is getting better, he says. Thank you, world.

“There is this feeling that our recuperation is coming from world growth. Everywhere you look there are signs that economic growth is good and even better than I imagined,” says central banker Ilan Goldfajn, fresh back from his trip to the G-20. On the domestic front, a precipitous drop in the inflation rate, by more than half in 12 months, has helped him and his monetary policy team slash interest rates to 13%.

Brazil is benefiting from higher commodity prices, higher demand from China — its biggest market — the U.S. and Europe. But double digit unemployment of 12%, a lackluster job market, and an ongoing political scandal involving roughly a third of congress and…