Of course, no one is happy with the stock market's decline in recent days, especially when Bolsonaro began making changes to his government since Mandetta's dismissal.
The main index of the Brazilian stock exchange, B3, closed with a sharp drop this Friday (24), following the negative climate on international stock exchanges and with the departure of Sergio Moro from the Ministry of Justice.
To our dismay, the Ibovespa ended the day with a sharp drop of 5.45%, at 75,330 points. During the day, it fell 9.54%, reaching a low of 72,040. See more quotes.
However, the dollar closed sharply higher, at R$ 5.65. Among the main decliners, Petrobras fell almost 6% and Banco do Brasil more than 13%. The previous day, the stock market closed down 1,26%, at 79,673 points.
Economists fear the stock market will continue to fall
We all know that Moro's decision – who gained notoriety as the main judge in Operation Car Wash – comes after the dismissal of the Director General of the Federal Police, Maurício Valeixo, by President Jair Bolsonaro, published in an extra edition of the Official Gazette of the Union this Friday.
As Folha reported, the political weakening of President Jair Bolsonaro is expected to completely bury the liberal agenda of Minister Paulo Guedes (Economy) and lead the government to adopt a more interventionist stance to try to promote the recovery of economic activity in the post-pandemic period.
This is the assessment of economists who gave interviews to Folha de São Paulo this week, who disagree, however, on the viability of a strategy that increases the State's presence in the economy, through, for example, an infrastructure investment plan with public resources.
Other leading experts are saying that future projections are not at all pleasant, the signs are clear that the country is heading back towards a national-developmentalist economic policy.
Furthermore, experts also believe that GDP is likely to fall. Our Gross Domestic Product today is 4.1%, but at least that is what has been outlined so far by Tendências, with the possibility that the economy will only return to 2019 levels at the end of 2021. It is already optimistic given the new political environment created with the departure of Sergio Moro from the Ministry of Justice and Public Security.
So, what to do?
Ultimately, we must await further changes. For more economic news, stay tuned to our portal. Digital Insurance or go now to the official portals below.
Source: G1 Economy and Economic Value.