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Significance
When Bolsonaro was elected in 2018, he enjoyed widespread private-sector support based on promises to implement radical free-market reforms and sound monetary and fiscal policies. However, that support has declined amid persistent high inflation and interest rates, lack of major reforms and looser fiscal policy.
Impacts
Growing private-sector splits will create new opportunities for Lula to emphasise Bolsonaro’s economic shortcomings.
Divisions may mar the positive economic signals arising from the Auxilio Brasil welfare programme.
If the election goes to a second round with Lula substantially ahead of Bolsonaro, more economic groups will begin to shift support to Lula.
Keywords:
Brazil,
LA/C,
economy,
industry,
politics,
agriculture,
banking,
election,
environment,
finance,
fiscal,
government,
manufacturing,
monetary,
opposition,
policy,
prices
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2022
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