Hello, This is Tokyo Consulting Firm Brazil’s Blog.
We are posting about “Brazil: Election x Economic” in this time.
Brazil, a country that recently suffered from the act of impeachment, in a rather chaotic period for the local economy. Outside the military regime for just over 30 years, it has been facing various economic and political crises, as well as scandals linked to public entities. This year, with presidential elections and other important positions, the investor tends to get more attention in his decisions, because there is the possibility of sudden changes in the country.
With the arrival of the eve of the election and disclosure of the results of the electoral surveys, it is conclusive the economic and legal instability that occurs, especially when the candidate leading the research has thoughts and opposing plans of the current government. To prove the above speech assertion, who accompanies the financial market, can identify the drastic variation in the prices of assets, stocks exchange, dollar, interest and other indexes. In dealing with the real economy, we basically have slower movements, but greater impacts.
With this economic insecurity and slow operations, unemployment may increase, because the variations in the indexes are so unpredictable that the companies have an insecurity to make investments or improvements in their business, soon there is a decrease in productivity consequently in the hirings . But why do companies do this? Basically for prepare for the new possible situations that are to come.
Thinking quickly, if we obtained uncertain economic prospects and a reduced possibility of people to consume or invest, the next governor should aim to bring greater legal security, predictability and reform necessary for the sustainable economic development of Brazil. As has been verified and published by The Economist magazine with the cover “Brazil Takes Off”, in Portuguese, “Decola Brasil”, potential for growth the country has, however this decision belongs to the citizen, where it has the mission of searching the candidates, not only more representative positions, as president and governors, but also others position and identify which have better ideas and real projections for them to be applied and make investors look to Brazil and feel again the confidence to invest and the world look back at our economy with confidence.
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