Brazil: EIU analysis

19 febrero, 2016 por Felipe Sahagún | Sin comentarios

In brief

The president, Dilma Rousseff, is expected to survive impeachment proceedings against her and see out the end of her term in 2018, but in a weak position with adverse implications for the outlook. Her government’s fiscal adjustment programme is in disarray, and a second rating agency, Fitch, moved Brazil’s credit to junk status in December, after S&P downgraded it in September. This will trigger more capital outflows, put the Real under renewed pressure and deepen the recession in 2016.

Featured analysis

Economy | February 17th 2016EIU global forecast – Central banks to keep rates on hold

Excess capacity in developed markets means that central banks will keep interest rates lower for much longer.

Politics | February 5th 2016 Dilma addresses the opening session of Congress

President faces challenges, including impeachment proceedings, boosting the economy and controlling the Zika epidemic.

Economy | February 2nd 2016 Fiscal weaknesses may influence decisions to tame inflation

Fiscal weakness and external conditions lead the Central Bank to maintain interest rates, despite rampant inflation

Brazil retaining appeal to foreign investors

Purchases of Brazilian companies by foreign investors continues, despite the dire economic and political crisis.

Economy | February 18th 2016 Retail sales fell sharply in 2015

A decline of 4.3% was the worst since 2001 as consumers were hit by rising inflation, unemployment and credit costs.

Economy | February 15th 2016 Survey shows Latin America’s economic climate remains weak