Brazil is beginning to obtain growth more and more through state intervention and personal debt, something not dissimilar to Brazil in the 60's and 70's (touched on in the article). Brazil is still an incredibly difficult place to legitimately find success through hard word, savvy, and skill, and not through nepotism, connections, or "O jeitinho Brasileiro." With more government control, this fact will only be underlined. Brazil's growth is intrinsically tied to commodities, but not innovation. If another country (like Chile is eyeing for) becomes a competitor in commodities and is a more viable choice, Brazil will slow even further. What Brazil needs is to diversify, to streamline its bloated bureaucracy, and to innovate.
The country can't be only propped up by government handouts and selling some tasty fruits and good veggies to the Chinese.
The indebtedness. This article outlines it all:
Brazil's New Middle Class Seems to Be Trapped by Debts and Payment Deadlines
The poor are a little better off, but they still cannot pay for things like electronics without drowning debts. If the economy REALLY slows (unlikely, due to China's rapacious need of commodities, but still), these debts can't be paid, and then it's curtains for everyone...
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