Converging economic interests are emerging as the principal driver of U.S.-Brazil relations. A reelected President Barack Obama and President Dilma Rousseff, at the half mark of her government, are confronted with daunting tasks. Both leaders need to scientifically improve the economics performance of their countries in the case of major political obstacles at home and an adverse economic outlook abroad. In both countries, sustainable growth will require investment in infrastructure, education, and innovation more than consumption. How they respond will determine the success or failure of their administrations. It will also affect the two countries' bilateral relationship and their regional and global standing. 

After leading through four years of anemic recovery and winning a victory on November 6 that gave him no clear political mandate, President Obama now has to find a path of economic growth that reduces unemployment while avoiding the pitfalls of a fragile fiscal and financial situation. That state of affairs, if mishandled, could easily throw the United States and the world economy back into recession.

Read the rest of the policy brief here.

This is part of a series of Policy Briefs on critical issues which will run from now until Inauguration Day. 

Photo courtesy of Blog do Planalto