04-2020 Latin American Economy & Business Report
Economy & Business Report
Fiscal austerity out the window – for now
The Brazilian economy represents almost 50% of Latin America’s GDP and how well or how badly it performs affects investor sentiment towards the region as a whole. There is no doubt that the Brazilian political system is in crisis, with corruption allegations threatening President Michel Temer, and some calling for early elections (the scheduled date for the next general election is October 2018). There are different ways of reading this crisis. Optimists say the recovery will continue, with low asset prices creating an attractive buying opportunity for foreign investors. Pessimists fear the recovery may falter, with things getting worse before they can get better.
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