Elections sow uncertainty over Brazil economic policy

Subject

Candidates' economic policy proposals.

Significance

As Brazilians head to the polls for the October elections, their country is struggling to recover from its deepest recession in modern history. Among most main candidates, common ground exists in areas such as the need to simplify the tax system and to attract private investment in infrastructure, but there is also a divergent range of economic policy proposals on offer.

Impacts

• Election uncertainty will fuel further market jitters in the coming weeks.
• Among the favourites, Geraldo Alckmin would probably have the least turbulent relationship with Congress.
• A sovereign default is unlikely in any scenario.