Brazil went through a serious economic crisis in 2015 and 2016, when registered negative growth and went into recession. Politically, it didn’t look different as several parts of the country staged massive anti-corruption demonstrations and it went through a controversial impeachment process leading to an installed president in May. Michel Temer has been permanently in office since late August 2016 and from then, he himself and his team have been communicating relentlessly that Brazil is back on track and on the way to economic recovery. But is this, in fact, happening?
There are some positive indexes to be pointed out recently. Brazil’s currency real got some strength related to the American dollar in the last months and the stock market is doing better when compared to a couple of years ago. What’s more, the inflation, despite still high, gave at the end of 2016 its first indicative of slowly going down.
Therefore, apparently, Brazil is recovering bit by bit. However, many economists are still sceptical, saying that these positives indexes are something that will last just for a brief period of time and that this year Brazil’s economy will grow around 0.5%, something still sluggish for a large country. Besides that, Temer’s policies are constantly attacked for marking the country’s recovery on austerity, in which the poor will suffer the most.
Temer is still an unpopular president, with very low approval rates. On the corruption front, an utterly sensitive subject, which led to the impeachment of his predecessor, it seems that not much has changed. Recently he nominated his right-hand man Moreira Franco to be one of his ministries, according to several names on the opposition side, to spare him from the car-wash investigations. But Franco hasn’t taken up his new post yet due to an injunction order set by a judge last night. Franco’s team is pleading against it. Besides that, Temer said this week he will appoint his ally and current ministry of Justice, Alexandre Moraes, to the Federal Supreme Court, a role that theoretically demands to be unbiased.
It is still impossible to say that these current positive economic indicators will be translated into something more substantial in the future or if the recent political nominations will trigger any kind of crisis which will scatter into the economic end, but Brazil Trade will be here updating you with more news from Brazil. Stay tuned!