SÃO PAULO: As the world starts to focus on the Olympic Games in Rio de Janeiro, economists here say they see signs another megaevent is approaching: an end to Brazil’s worst downturn since the Great Depression. Latin America’s largest country remains mired in a brutal recession, but some leading economic indicators have ticked up slightly in recent weeks, or at least stopped deteriorating, raising prospects for a return to growth.
A welter of other challenges looms as Brazil comes under the Olympic spotlight. Suspended President Dilma Rousseff’s impeachment trial is under way in the Senate, and police on Sunday were hunting for a 12th suspect after arresting 11 men last week they say was part of a group for allegedly plotting to conduct terrorist attacks during the Games. The Zika virus is triggering health concerns among some athletes and other visitors. And a continuing corruption probe is implicating a growing circle of business and political leaders.