Macro Forum: The Street View


Brazil Image

In Brazil, cautious optimism persists in business circles on election of Jair Bolsonaro. The key will be the successful passing of the pensions reform bill, which passed its first test on 23rd April when a congressional committee voted that the proposed legislation was constitutional and could move through Congress. Following this the Bovespa reached 100,000 points on March 18th, the highest point in its history with an 8.6% growth in the index over first quarter 2019, closing end of March at 95,414.55.

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
GDP* 1.1% 0.5%
Inflation* 3.75% 4.58% 3.37%
Benchmark Interest Rate** 6.5% 6.5% 6.5%
Benchmark Bond Yield** 9.24% 8.98% 7.47%
Stock Market Index** 87887.3 95415 100,100

* Year on Year

** End of Month


Real GDP growth

Source: International Monetary Fund

Brazil FX vs FV

Source: Bloomberg Spot Price and Actis methodology for Fundamental Value


Source: International Monetary Fund