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LatinNews Regional Monitor: Brazil & Southern Cone - 25 May 2017
Secret recording could reverse Brazil’s fortunes
The beginning of May marked a period of relative calm for Brazil. President Michel Temer had just completed his first year in office. Much to his delight, the domestic economy was beginning to grow again (albeit slowly) following two years of recession. Investors saw positive returns on the local stock market and the value of Brazil’s currency, the Real, was stabilising. For Temer, all this was a vindication that his fiscal reforms, such as a cap on public spending, were working. But things suddenly took a turn for the worse for Temer following the release of leaked audio recording linking him to a bribery scheme.
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