The Brazilian economy in 2023 has had its fair share of challenges. Compared to the market-friendly economics of former president Jair Bolsonaro until 2022 things are looking less positive. The economics of current president Lula da Silva is more focussed on taxation and spending. Markets have reacted.
Recently the IMF conducted a report into the Brazilian economy where the outlook was analysed. Some of the insights showed how inflation may have been tempered at the end of 2022, but into 2023 things have gradually become more difficult and prices are rising again.
The stock exchange hasn’t been immune to all this. The exchange hasn’t produced any spectacular results since the presidential election of 2022. Dipping dramatically in March, but mostly recovering at time of publishing.
Where are the Bargains?
Brazilian stocks and investments look cheap. Coming in at a 15% discount compared to the Latin American average. According to Bloomberg, “foreign investors were also a major driver of 2022’s equity market rally, purchasing a net $19 billion worth of Brazilian stocks, the most since records began in 2009”.
To add to the story the Brazilian currency itself is still considered to be ‘cheap’ which will continue to attract investors. With China and the U.S. having a large impact on the Brazilian economy it would seem that international investors will have more optimism than local investors.
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See the original story here:
Buy Brazilian bargains – LatAm INVESTOR (latam-investor.com)
