An efficient finance minister and the favourable international backdrop are helping.
When Luiz Inácio Lula Da Silva was elected as Brazil’s president last year, investors shuddered.
Many feared a return to the fiscal profligacy that characterised the previous government of his Workers’ Party, which ended in 2016 in a deep recession.
Yet six months after he took office, markets are warming up to Lula’s administration.
In a recent poll of 94 Brazilian fund managers and analysts, just 44percent had an unfavourable view of the government, down from 90percent in March.
On July 26th Fitch, a ratings agency, upgraded Brazil’s long-term foreign-currency debt for the first time since it was downgraded in 2018. — theeconomist