Despite
the crisis that Brazil is undergoing, we’ve already revealed some good news,
mainly highlighting the gradual growth of the Brazilian economy; notwithstanding
the constant turmoil regarding Brazilian politics.
In
the last report on Brazil, we also emphasized that politics could not live unaware
of the economy; the country to make progress, would have to overcome the
various mess and disturbances that are before all of us.
However,
although the economy has shown some signs of emerging from the recession, at
the investment level we still don´t have big prospects for the near future. If
we continue to have a perilous investment, Brazil is bound to have a new
"chicken flight" growth.
The
low level of confidence from economic agents and the hesitant resumption of
production factors are usual in times of crisis, but the most decisive factor
for Brazil still having low investment levels is fundamentally due to the
unprecedented level of political uncertainty.
Indeed,
the country has already experienced difficult times at the political level with
disastrous consequences for Brazilian society, however, the reality is that
this recurring climate of uncertainty causes investment decisions to be delayed
and investors adopt a posture of " wait and see ".
The
climate of mistrust increased mainly after the media broadcast the conversation
between businessman Joesley Batista and President Temer.
In
the coming months, investments may begin showing some positive rates if there
are no more political crises
Yet,
the great concern that is pointed out today refers to the scenario the country
faces when Michel Temer’s mandate ends. Though some presidential names already showing
up, uncertainty and doubt dominates the direction Brazil will take, so that
2018 is still considered by most economists a rather unexpressive year in the
resumption of investments.
Miguel
Verde - Senior Consultant, Professor of International Relations
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