Brazil’s Recession Puts Incumbent in Trouble Ahead of Elections

Just five weeks before the voting that will take place on 5 October, it was announced that Brazil had fallen into a recession earlier this year.

The economy of South America’s largest country shrank by 0.6% in the second quarter of this year and by 0.2% in the first.

Analysts are projecting Brazil’s growth to be less than 1% in 2014 while inflation is at the higher end of the central bank’s target.

In 2010, when Ms Rousseff was first voted into office for the Workers’ Party, the economy was growing at 7.5%, attracting positive headlines both at home and abroad.

It is hardly surprising, then, that the economic slowdown has become fertile ground for opposition candidates to exploit.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza