Synthesis of the Brazilian Economy

BRAZIL ECONOMICS - Report 06 Nov 2017 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

President Temer has managed to forestall three attempted investigations of corruption: one in the Superior Electoral Tribunal and two in the Chamber of Deputies. To achieve this, he has spent a relevant part of his scant political capital, condemning the country to 11 months of agony until the new president is determined. Not even the noteworthy victories in the economic area – the end of the recession and fall of inflation, unemployment and interest rates – have improved the political capacity of the current government, which will likely fail to deliver all the necessary reforms promised. Therefore, fears have emerged that asset prices will start to reflect this new reality, and some signs are now appearing.

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