The World Cup in Brazil is finally here. Ben Taverner in Sao Paulo reoprts it's providing a much needed distraction from the economic problems the country’s having. Brazil is the 7th richest country in the world. But growth has stalled, unemployment’s rising and inflation’s way off its 4 and a half per cent target.

Brazil will be lucky if it expands by 1 and a half per cent this year. In a bid to keep inflation in check, interest rates have risen from just over 7 per cent to 11 percent. Those rates have in part helped the Real, up more than 3 percent this year… but it did fall 13% percent in 2013.

On top of that, you’ve got investment and consumption dropping, along with industrial production. 

It’s a real challenge for President Dilma Rousseff who in June said she couldn’t fully explain why Brazil’s economy isn’t doing better. There are numerous calls here, and abroad, for major economic reforms. They’re unlikely ahead of Presidential elections in October. Rousseff is still the front runner. But given the state of the economy, her re-election is far from guaranteed. 

Saxo Bank and TradingFloor.com have launched their own interactive publication based on the World Cup. We're putting a unique spin on the competition and we want you to use your knowledge and expertise to predict who'll win the World Cup of finance. Click here for more on that:
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