BRAZIL ECONOMICS
Analysts
Alexandre Schwartsman
Former Central Bank Deputy Governor
Cristina Pinotti
Former Chief Economist, DIVESPDatabanks
Events
Recent Country Insights
Winston Churchill’s Wisdom
BRAZIL ECONOMICS · Report · 29 Nov 2024
The long-postponed "fiscal adjustment package" has finally come to light. The reaction was so negative that some suggested another postponement would have been a better option. The first conclusion we draw, as we will explore further, is that the magnitude of the promised adjustment falls shor...
Giving Birth to a Mouse
BRAZIL ECONOMICS · Report · 25 Nov 2024 · 1 response
Since 2023, the public debt, which had been on a declining trajectory, began to increase again. Projections for interest rates and primary results indicate that this trend will persist for several years. To stabilize the debt relative to GDP, a surplus of at least 2% of GDP will be necessary unde...
No Relief
BRAZIL ECONOMICS · Report · 18 Nov 2024 · 1 response
Economic activity in the third quarter remained robust, although less dynamic compared to the first half of the year. Our forecasts puts GDP growth close to 0.8% in the third quarter, once again above potential. Consequently, and aligned with a continuously declining unemployment rate, we expect ...
COPOM Watch: Bad Omens
BRAZIL ECONOMICS · Report · 12 Nov 2024
While the statement following last week’s Copom meeting was virtually identical to the previous meeting's (albeit with a slightly more critical tone toward fiscal policy), the minutes brought some changes compared to its previous incarnation. These changes, while not suggesting any commitment reg...
A (Near) Perfect Storm
BRAZIL ECONOMICS · Report · 12 Nov 2024
Inflation forecasts point to a high likelihood of exceeding the upper limit of the target this year. Meanwhile, the Central Bank's inflation projection for the 12 months ending in June 2026, the relevant horizon for monetary policy, is 3.6%, indicating the need for an adjustment of approximately ...
Between a Rock and a Hard Place
BRAZIL ECONOMICS · Report · 07 Nov 2024 · 2 responses
There were no surprises in the Copom’s decision: as expected, the committee raised the target for the benchmark interest rate by 0.50 percentage points, from 10.75% to 11.25% per year, without providing further indications about its next steps or the total extent of the monetary tightening cycle....
Synthesis of the Brazilian Economy
BRAZIL ECONOMICS · Report · 04 Nov 2024
OVERVIEW THE CONFIDENCE CRISIS STILL WAITS FOR AN ADEQUATE RESPONSE The decline of the Workers' Party (PT) in the municipal elections at the end of October added a significant element to the political landscape. The major winners were the Social Democratic Party (PSD), known as the “Kassab...
Depending on the Kindness of Strangers
BRAZIL ECONOMICS · Report · 28 Oct 2024 · 1 response
Recent behavior of the U.S. dollar and interest rates indicates that external factors' contribution to the appreciation of Brazil's exchange rate are likely to be lower than expected. Along with data showing robust activity and labor market conditions, increased odds of Donald Trump winning the p...
Not So Fast
BRAZIL ECONOMICS · Report · 21 Oct 2024
After robust growth early in the year, economic activity shows some signs of slowing down in high-frequency data, largely due, we believe, to changes in fiscal policy dynamics. The first half of the year was marked by a fast expansion of public spending, which has cooled off more recently. The la...