Financial market rehearses government’s ‘silent landing’, says former secretary of economic policy

  • Camilla Veras Mota – @cavmota
  • From BBC News Brasil in São Paulo

Minister of Economy, Paulo Guedes, and President Jair Bolsonaro

Credit, Fabio Rodrigues Pozzebom/Ag. Brazil

Photo caption,

Market was overly optimistic, says Mendonça de Barros

The manifestos signed in recent weeks by businessmen, agribusiness and financial market figures are the visible side of a “silent landing” by part of the economic elite of the Bolsonaro government’s support base.

The assessment is made by economist José Roberto Mendonça de Barros, secretary of Economic Policy at the Ministry of Finance between 1995 and 1998, founder of the MB Associados consultancy, in operation since 1978, and member of the board of different companies.

The “disenchantment” of part of the financial market and businessmen with the government has deepened in recent weeks in view of what he considers a turning point in the political and economic scenario.

The troubled proceeding of the reform of the income tax and the proposal of installment payment of precatório in order to turbo-charge a new Bolsa Família were mixed with the anticipation of the presidential succession, the increase of inflation and interest and, now, a water and energy crisis.