Brazil's bold industrial turn is a gambleListen to this articleFor many in the developing world, Brazil is a rare beacon of hope in an otherwise bleak global landscape. Finally, Mr Lula's industrial policy signals a major shift in Brazil's national-security strategy. Brazil's benchmark interest rate, the Selic, is among the highest in the world, at 15% -- and that's merely the base rate from which other interest rates are derived. Given how difficult it is to imagine any private investment projects being viable at such levels, it is hardly surprising that Brazil's investment rate has remained stubbornly low, at around 18% of GDP. High interest rates persist not because they are economically rational, but because of political choices.

Source: Bangkok Post December 25, 2025 07:47 UTC