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Political Crisis in Brazil: Contagion Risk Limited

Perspectives» |

May 22, 2017

President Temer took office less than one year ago after the impeachment of Dilma Rousseff; his popularity rating is very low, as he has been trying to push through some unpopular reforms in order to rein in the nation’s depleted public finances that have been badly damaged by two years of recession. The current political turmoil could shift the focus from pension reforms to elections, with an outcome of no pension reform being implemented. We have taken a more cautious stance towards Brazilian debt on the back of recent events, but expect the crisis to be contained domestically.

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