Though the market’s initial reaction is unlikely to be favourable, the concerns remain more long-term. Against a backdrop of weak growth, a significant current account deficit, a stretched consumer, high inflation and already high interest rates, without a government that is prepared and mandated to push through significant reform, investors should remain wary.
Jerome Nunan is investment specialist, equities at Aviva Investors
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Key figures
-0.6%
The contraction experienced by Brazil’s economy in the second quarter of 2014
51.6%
The share of the vote won by Dilma Rousseff to secure her victory in the elections
11.85%
The amount taken up by Brazil in the MSCI Emerging Markets index
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