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Brazil

August 2012 | Risk Summary

Brazil has been wracked by strikes in recent months, with public sector unions continuing to demand salary increases. Indeed, strikes by civil servants delayed the release of the June unemployment number, as the country's statistical agency was unable to accurately analyze labour market data. Given our tepid growth outlook this year, we believe President Dilma Rousseff's government is likely to face continued pressure from workers over the coming quarters as lacklustre economic activity feeds through to a weaker labour market.

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