» Brazil: Is The Recovery Faltering? Decision Economics

Brazil: Is The Recovery Faltering?

Posted June 13, 2013 by rvillareal

  • From present perspective, it appears likely that the net effect of current trends and policies will be a moderate-at-best pace of average real GDP growth during the remainder of year. [private]
  • DE now estimates Brazilian real GDP growth at 2.5%-to-2.8%, with some upside (depending on potential improvements in global demand and/or some unexpectedly strong impact from fiscal incentives) but with considerable downside risk still dominating the horizon.  This is a fundamentally poor environment for Brazilian assets, including—despite higher domestic yields—the real. 6-13-13–EMG INDICATORS AND INSIGHTS (Brazil retail sales)[/private]