Lula’s Brazil : third term’s the charm ?

🧐 What about Brazil ? 🌎

Lula’s comeback raises many questions about the future of the Latin American giant. However, after a decade filled with scandals, corruption and a return to poverty, the tide seems to be turning:

➡ Head start in its fight against inflation, which began 12 months before the US! 🏆

➡ Strong resilience towards financial shocks affecting Wall Street and towards the shutdown of the Chinese economy 🛡 (+4,7 % in 2022 for Bovespa index)

➡ Election results that will force Lula to work with center-right parties to push through his agenda 🤝 (therefore no wave of nationalization of private companies ❌)

Moreover, Lula’s pragmatism will also prove to be key in geopolitics, as investors seek safe sources of diversification from the newly emerged cold war.

He’s made clear his closeness to the US in his trip to Washington only one month after assuming office, without adopting a hawkish stance towards China.🤐
Far from it, Lula’s visit to Beijing in April 2023 aimed to restore relations between the two countries. By signing dozens of accords in his visit, Lula seeks to resume and boost Chinese investment in his country, from aerospace and infrastructure to energy and sustainable development.  🏗

Third term’s the charm ? 👀

León Campillo, CFA offers us a detailed analysis of the impact of Brazil’s macroeconomy.

To access the article, click here.