“After a recession between 2014 and 2016, the pace of Brazil’s economic recovery since has been ‘sluggish’,” according to Morningstar. “However, there’s cause for optimism here. Analysts at Bank of America Merrill Lynch expect the country’s post-election rally, which saw the Bovespa index jump 11% in the third quarter, to continue.”
As his first acts in office, Bolsonaro fulfilled his campaign trail promises among the farming community, declaring that indigenous land claims would be decided by the Agriculture Ministry. This boon for the powerful agribusiness sector also enraged environmentalists whom were worried about further loosening protections of the Amazon rainforest and the country’s withdrawal from the Paris Agreement on climate change.
“Growth for 2019 is predicted to come in at 3% by Aviva, while inflation is set to remain subdued as it moves modestly above 4% towards the end of the year. This will support an accommodative stance from the central bank, they add,” according to Morningstar.
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