Trade Alert: Brazil

The second round of voting in the Brazilian presidential elections took place on 30 October 2022. It has been reported that approximately 118 million Brazilians voted in that round. Former president and left-wing candidate Luiz Inácio Lula da Silva defeated rival Jair Bolsonaro, who had been in office since 2019, marking one of the most astonishing comebacks in political history. In the end, Lula da Silva received 50.9 per cent of the vote, while Bolsonaro won 49.1 per cent.

The cost of living and inflation in Brazil is increasing which is why many voters turned towards a Lula da Silva government, with his strong policy focus on tackling extreme poverty and hunger. However, Lula da Silva's rhetoric has unnerved some investors, with a clear focus on past achievements, rather than details of his fresh economic agenda. There are concerns he has not focused on the structural changes needed to improve productivity and generate long-term growth in the country, such as a