With the run-off election looming towards the end of this month, the economy continues to be first and foremost on the minds of Brazilian voters 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, if elected, materialize in an improving economy, BRZU will benefit.
Regardless of the winner, the International Monetary Fund predicts that Brazil’s economy will continue growth through 2018 and next year. Per an article from IG Markets, “When the International Monetary Fund (IMF) released its World Economic Outlook for 2018 and 2019, it renewed investor confidence in Brazil’s economic growth. The IMF predicted that Brazil’s economic outlook in 2018 would include 2.3% growth in GDP, with a further 2.5% growth in 2019.”
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