Politics still the biggest threat to Brazil’s recovery

Brazil’s beleaguered government will have to fight major challenges on at least three fronts over the coming months. As things stand, there appears to be a way forward for the government on each of them and our central scenario remains that it muddles through. But if the past couple of years have taught us anything it is to expect the unexpected when it comes to Brazilian politics. As the economic data continue to turn, politics remains the biggest threat to Brazil’s recovery.