Emerging markets will likely be the primary driver of global
growth in the coming years, and Brazil is positioned positively
given an expected radical shift in its economic and political
fundamentals and, consequently, a more market-friendly
approach.
Over the next years, under new President Jair Bolsonaro, Brazil
will likely move toward globalization, free trade, increased
national competitiveness and a reduction of bureaucracy to overcome
its national deficit and high level of unemployment. Public pension
and tax reforms, as well as a substantial reduction in government
spending, will likely be approved in the first half of 2019.
Financial markets already reflect investor confidence in the new
government and its cabinet. The IBOVESPA index reached an all-time
high (96k points) in the first two weeks of government, responding
well to the speech of new Economy Minister, Paulo Guedes, relating
to a considerable movement toward privatization, a stronger control
over
