Brazil’s economy firms, shifting political landscape ahead of polls

After a torrid two-year period, Brazil's thriving economy is expected to confirm signs of recovery this week, displacing the ground under the already unpredictable general elections of 2018.

On Thursday, the IGBE State Statistics Office will publish October unemployment figures. Go Associados' consultants expect the seventh monthly drop to fall to 12.1%, down from a record 13.7% in the first quarter of this year.

Then Friday, the IBGE will announce GDP figures for the third quarter. A Bloomberg survey of 31 economists predicts growth of 0.3% over the previous quarter, the third consecutive quarterly increase in output.

This would put some room for the recovery of the worst recession in the history of Brazil, which saw GDP decline by 3.5% in 2015 and 3.6% in 2016.

It also injects a new intriguing element in the preparation of the presidential and legislative elections of October 2018.

Up to now, polls have been dominated by Luiz Inacio Lula da Silva, a two-year-old former president who has been found guilty of corruption. A little behind him, in second place, is Jand Bolsonaro, a right – hand rifleman and a former army officer.

Source link