Another Crash Landing for Brazil’s Economy?
Brazil’s floating exchange rate, high foreign-exchange reserves, strong commodity exports, and debt denominated predominantly in its own currency reduce its exposure to a balance-of-payments crisis. Nonetheless,…
Rafael Martins/AFP via Getty Images Another Crash Landing for Brazil’s Economy? Oct 27, 2026 Gene Frieda Brazil’s floating exchange rate, high foreign-exchange reserves, strong commodity exports, and debt denominated predominantly in its own currency reduce its exposure to a balance-of-payments crisis. Nonetheless, continued fiscal deterioration under President Luiz Inácio Lula da Silva will carry high domestic costs.
LONDON—Brazil has an unfortunate habit of disappointing. Despite the country’s exceptional natural-resource endowment, its growth trajectory resembles what Brazilians call the flight of a chicken ( voo de galinha ): a brief flutter followed by an inevitable fall back down to Earth. President Luiz Inácio Lula da Silva ’s surprise re-election raises the risk of another letdown.
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- Project Syndicate27 Oct, 16:30
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