Limited Buying Opportunity Ahead Of Election

With a robust recovery underway, 2010 is shaping up to be another impressive year for the Brazilian economy. Indeed, we have recently upgraded our real GDP growth forecast to 5.0% this year, in large part based on our view that the Brazilian consumer will continue to drive the economy forward. In addition, we also see fixed investment levels picking up, as drawn-down inventories need to be replenished. In this context, macroeconomic policymakers will in all likelihood be well-positioned to throw their weight behind the election campaign of President Luiz Inácio Lula da Silva's hand-picked successor, Dilma Rousseff, ahead of October's poll, potentially keeping expansionary fiscal policy in place for longer than necessary.

To read the full article, please choose one of the following options: