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Weekly Report - 01 October 2020 (WR-20-39)
BRAZIL: Sending mixed messages
President Jair Bolsonaro’s government does not seem to have a clear economic agenda. Economy Minister Paulo Guedes, who preaches fiscal austerity and economic liberalism, appears to be an increasingly isolated voice as others in government have discovered the political benefits of loosening the purse strings and dishing out social benefits to the Brazilian population. The result is a contradictory and muddled discourse on economic and fiscal measures, as the government seeks, but fails, to reconcile assurances of fiscal responsibility with promises of social benefits – as observed this week when the announcement of plans to fund a new social programme, dubbed ‘Renda Cidadã’, spooked investors.
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