Brazil’s Threat To The Global Economic Recovery
Given its size and the considerable political risks Brazil will face in 2018, it is the emerging country that could pose the greatest threat to the global economic recovery, said Desmond Lachman, in a challeging article (“Brazil’s Threat To The Global Economic Recovery”) that appeared on Tuesday (Nov. 29) in the site of Seeking Alpha.
In Lachman’s view, in spite of good stock market performance, the real firmed markedly against the dólar, investors must pay attention to the fact that
Brazil remains in the midst of a major corruption scandal that “has seriously tainted the country’s political class and has undermined confidence in the economy”, with serious charges leveled against President Temer and many ministers of his cabinet.
“It is generally expected that Brazil’s political center will collapse and that the main beneficiaries of the country’s unsettled political setting are to be populist candidates on both the far-right and the far-left of the political spectrum. That hardly bodes well for disciplined and market-friendly economic policies in the years immediately ahead”, said Lachman.
Full article (Seeking Alpha)