Opinion

Despite economic uncertainty, there are still reasons to back Brazil

The Covid-19 pandemic has brought untold levels of unpredictability to the Brazilian economy, but all is not lost, say experts

Despite economic uncertainty, there are still reasons to back Brazil
Photo: MJgraphics/Shutterstock

The Covid-19 pandemic has caused levels of economic unpredictability to skyrocket in Brazil. The Brazilian Economic Uncertainty Index (IIE-Br), compiled by the Brazilian Institute of Economics at think tank Fundação Getúlio Vargas (IBRE-FGV), has hit its highest mark in history, far above measurements recorded amid previous 21st-century crises. In April 2020, the IIE-Br reached 210.5 points. In its previous peaks — at the 2002 presidential election, the 2008-2009 financial crisis, and Brazil’s loss of investment-grade rating by S&P in 2015 — the index hit 132.1, 132.4, and 136.8 points, respectively.

The so-called “standardization window” of the IIE-Br came between...

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