Brazil hopes to reach the next level of world leadership. The nation temporarily replaced impeached President Dilma with President Temer, pending its corruption investigation. Brazil Banking Consultant Igor Cornelsen tells people what they should expect under Temer’s presidency.
“Higher Expectations for Brazil”
President Lula showed that civilian leaders could run the economy better than military dictators. Key decisions in controlling inflation, joining the BRICS and hosting world-class events have made Brazil a popular investment choice. No one wants the nation to go backwards.
Unfortunately, some South American nations seem to be sinking back into the abyss in 2016. Argentina continues to argue over payment of national bonds, after its default. Venezuela is experiencing chaos as it has been forced to reduce its work week to 2 days amidst food riots, electricity outages and budget woes.
Although Dilma, may or may not be guilty of corruption, her removal might have had more to do with worsening economic conditions. On May 13, 2016, CNN reported that Brazil’s economy shrank in 2015 by -3.8% and unemployment had risen to 10.2%. Not only must Brazil leaders make its citizens happy, but it must also appease foreign investors.
“Temer Promotes Austerity”
Brazil President Temer immediately cut the size of his cabinet from 32 to 22 ministries. Brazil’s Central Bank Chief (from 2003 to 2011) Henrique Meirelles praised the moves. The financial professionals have also applauded the change by increasing the Bovespa: up +23% for the year.
Thankfully, Brazilians have increased their expectations, now the politicians must respond. Brazil Banking Advisor Igor Cornelsen, CNBC interview covered the Brazilian banking sector, by helping individuals understand the key characteristics. Certainly, banks would be key beneficiaries of an economic turnaround, according to Igor Cornelsen. Only the future will tell us whether the politicians can deliver.
Learn more about Igor Cornelsen: