Reflecting the deteriorating economic conditions, the country’s unemployment rate hit 6.4% in April, its highest in four years. Inflation is expected to rise to 8.26% at the end of the year and has also breached the central bank’s upper band of 4.5% plus or minus 2 percentage points.

Additionally, the government stated it would freeze R$69.9 billion in discretionary expenditures and hike taxes on banks and brokerages, among other measures.

iShares MSCI Brazil Capped ETF

For more information on Brazil, visit our Brazil category.

Max Chen contributed to this article.

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