Uncertainty still surrounds the Brazilian economy

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Uncertainty about the Brazilian economy in 2017 has increased in recent weeks. This is partly a result of Donald Trump’s victory in the US elections and doubts about the future of American economic policy. The external scenario is expected to become less favorable for emerging countries in the future, with higher interest rates, impacts on the exchange rate and inflation, and possibly heightened protectionism. There is uncertainty particularly about how severely and how quickly these might come about.

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