The Brazilian Bovespa And Real Tumbled In A Day Filled With Bad News
Brazil's Sao Paulo Stock Exchange fell 2.43 percent on Tuesday to 45,494.7 Bovespa index points, following a bunch of bad economic news, including the presentation before the Congress of a budget for 2016 that anticipates a primary deficit, before paying debt, of 0.5 percent of the GDP. The original forecast included a surplus of 0.7 percent of the country’s GDP.
Margarida Gutiérrez, an economist from the Rio de Janeiro Federal University told AFP, “the exchange rate will surge, the country-specific risk will rise, we will have pressures, the stock exchange will fall further." She added, "The upcoming days will witness a lot of tension, although estimating that, long-term, the deficit will not occur," Argentine site Ambito reported.
The article continues, “Rouseff’s government faces problems in multiple fronts: to the recession that started in the second quarter, and that will last two years, we can add an inflation that is getting close to double-digits, an unemployment rate that has been rising for seven months and a big corruption investigation en state-controlled Petrobras, which affects the leading Workers Party and others in its coalition, as well as infrastructure initiatives.”
The Bovespa also fell 8.3 percent in August.
The Brazilian Real also declined on Monday. After loosing 1.87 percent, each real is worth 0.271 U.S. dollars.. Moreover, the currency weakened 5.53 percent over August.
Note: The original Ambito article was written in Spanish.
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