Synthesis of the Brazilian Economy

BRAZIL ECONOMICS - Report 11 Dec 2017 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

The fragility of the Temer administration is demonstrated by the obstacles it faces in obtaining approval of the pension reform, undermining the chances of victory of a candidate drawn from the current governing coalition in next year’s presidential race. This situation is reason for high anxiety about the result at the polls, since at the moment the leading potential candidates in the opinion surveys are populists and radicals. Of course, nothing guarantees that this situation will continue in the months ahead, because definition of the candidates still depends on the slow process of stitching together alliances, as is currently happening within the PSDB. Because of these uncertainties, the effects of the positive economic numbers on economic decisions remain very limited​.

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