Impeachment sends Brazil's economy into storm winds

Brazilian President Dilma Rousseff, speaking here in Brasilia on December 4, 2015, faces being impeached in an effort led by Eduardo Cunha, the President of the Chamber of DeputiesStrong winds are forecast for Brazil’s already turbulent economy and there’s no chance of sunshine before resolution of President Dilma Rousseff’s impeachment battle, market observers say. Volatility is the key word as Brazil’s Congress embarks on what could be months of intense debates over the fate of the unpopular leftist president, whose second term so far has been plagued by deep recession and a giant corruption scandal at the heart of the political and business establishment. The initial reaction to the launching of the impeachment process last Wednesday was a euphoric jump in the Sao Paulo stock market, up five percent at one point before closing with its best performance of the year up 3.29 percent.

Share this article