Business

Brazilian markets buoyant about recovery, despite Covid-19 chaos

While international actors are predicting huge GDP losses for Brazil in 2020, domestic investors are far more optimistic

recovery covid

The Covid-19 pandemic has pushed the Brazilian economy into one of its worst periods of recession, with GDP expectations for 2020 hitting -9.1 percent, according to the International Monetary Fund. However, amid this pessimism from global actors, expectations from the market are far more favorable. The latest forecasts show a slide of “just” -5.04 percent for the year, suggesting that investors in Brazil are more bullish about Brazil’s post-coronavirus recovery.

This trend of optimism kicked off in September. According to confidence indexes measured by think tank Fundação Getúlio Vargas (IBRE-FGV), business owners in both industry and commerce are already...

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