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Brazil: After pension reform, what next?

Brazil’s pension reform bill should help to stabilise the public finances and lift a dark cloud over the outlook. The government has a long to-do list of further fiscal reforms, although the political situation suggests that some of these will be delayed, diluted or abandoned. Either way, it looks like the good news on reform is already priced into local markets, and their outperformance will probably come to an end.

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