In the meantime, the economy will continue to be first and foremost on the minds of Brazilians as the country has been slow to recovery after it experienced its worst recession to date. Unemployment levels remain high with double-digit figures and the country is drowning in public debt–74% of Brazil’s GDP.
While the annual GDP growth has posted positive gains as of late, it’s still not at a level where economists are optimistic about the future growth prospects. The idea situation to address Brazil’s current financial woes is to elect a president who is market-friendly to help stymie the issues by effecting policies that favor economic expansion and growth.
With a much-needed shock to its political system, Bolsnaro could be the solution that Brazil needs and if his policies materialize in an improving economy, the country and Brazil-focused ETFs will both be beneficiaries.
U.S. President Donald Trump contacted Bolsonaro on Sunday to congratulate him on the presidential victory, which was followed up by a tweet, saying that, “We agreed that Brazil and the United States will work closely together on Trade, Military and everything else!”
Had a very good conversation with the newly elected President of Brazil, Jair Bolsonaro, who won his race by a substantial margin. We agreed that Brazil and the United States will work closely together on Trade, Military and everything else! Excellent call, wished him congrats!
— Donald J. Trump (@realDonaldTrump) October 29, 2018
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