We’re covering the government’s lack of response to curb the effects of the coronavirus outbreak on the economy. The rise in confirmed Covid-19 cases. And the latest scandal in the stock market.
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Brazil economy on course for another wasted year
Regardless of where you look—the foreign exchange rate, GDP figures, stock market performance—the Brazilian economy is underperforming according to all projections at the beginning of the year. The latest Focus Report—a survey by the Central Bank with top-rated investment firms—shows that analysts projected the exchange rate to finish the year at USD 1 : BRL 4.20.
On Thursday, the rate was USD 1 : BRL 4.65.
Why it matters. Economy Minister Paulo Guedes said Brazil’s GDP growth rate might be cut by 0.5 percentage points due to the outbreak—that is, if things don’t get even worse.
Confusion. The government has not been able to propose any coordinated response to avoid yet another year of economic sluggishness. Mr. Guedes seems unfazed by the daily crash of Brazilian assets; President Jair Bolsonaro is more worried about ridiculing the press; while Treasury Secretary Mansueto Almeida says “it is not normal” for Brazil to...