Synthesis of the Brazilian economy

BRAZIL ECONOMICS - Report 05 Oct 2020 by Affonso Pastore, Cristina Pinotti, Paula Magalhães, Bruno Cordeiro and Marcelo Gazzano

The country is now close to completing the seventh month since the start of the pandemic, which has claimed over 145 thousand lives so far, and the daily death toll is still stubbornly stationary at around 700, demonstrating the exasperatingly slow deceleration of the disease in the country. Against this backdrop, Bolsonaro is trying to find a way out of the trap he stepped into by embracing a program to mitigate the economic effects of COVID-19 on the most vulnerable people that simply won’t fit in the nation’s budget. The scenario ahead regarding the behavior of the exchange rate, interest rate, inflation and economic growth will depend on the solution of this enigma.​

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