Since the inauguration of President Jair Bolsonaro in January 2019, a trend of cautious optimism has swept over the Brazilian business community.
Following the guidance of the Minister of Economy, Paulo Guedes, the new government has proposed to host free market reforms that piqued the interest of both domestic and foreign investors.
The government’s largest mandate includes pension reform, which may bolster fiscal health of the nation and endorse the relation between the executive power and congress. This will likely pave the way for the approval of other relevant reforms (like tax and anti crime) and further actions of the government for sweeping deregulation and privatization, fostering new investments after years of sluggish economic growth.
The IBOVESPA index reached an all time high (105k points) in July 2019, reflecting investors’ increasing confidence in the country.
Brazil is currently boasting a healthy balance of external accounts, stabilized inflation and a more stable fiscal situation.
By Duff & Phelps