Political risk in this year’s Brazilian presidential election isn’t severe enough to faze investors. Latin America’s economy will see some healthy growth, led by the quickly-expanding Brazilian economy. Additionally, Brazil exchange traded fund (ETF) investors may now track the country’s financial sector.
Investors are finding that the current presidential election in Brazil looks less risky than most elections since the main contenders favor the market-friendly policies already in place, which include a free-floating currency, inflation control and fiscal discipline, writes Raymond Colitt for Reuters. Additionally, both candidates agree on the need for an overhaul of the country’s convoluted tax system to encourage foreign investment.
Finance Minister Guido Mantega announced that they will have a budget surplus target of 3.3% of GDP for the year.
The International Monetary Fund (IMF) recently stated that Latin America’s economy could expand a higher-than-expected 5% for the year, report Luciana Lopez, Guillermo Parra-Bernal and James Matthews for Reuters. Brazilian economists are even more bullish, predicting that Brazil’s economy will grow 7.2% this year. [Brazil ETFs: Growing, With Room for More.]