Financial Market Fears “Bolsonaro Risk” Will Frighten Foreign Investors

RIO DE JANEIRO, BRAZIL – With a stagnant economy and discouraging prospects in the government, the financial market is preparing itself for the so-called “Bolsonaro risk”, reports Brazilian newspaper Valor Econômico.

The president’s public statements, particularly his belligerent stance on global issues such as the environment, have scared off investors.

Despite confidence in the economic policy of Minister Paulo Guedes, the virtually unanimous conclusion is that Bolsonaro’s controversial statements have been a hindrance.

According to Valor, executives are uncomfortable with the president’s behavior: “Investment committees and boards of directors of large funds are more and more reluctant to allocate funds in Brazil because of what they refer to as ‘civilizational setbacks’. This perception has intensified with the Amazon events and the case of Macron’s wife,” says an executive.

“That kind of conflict can reduce investments in the country. I don’t think President Bolsonaro has yet understood that a government needs good discourse. It’s very important to do that carefully,” another investor says.

The government’s complete inability to deal with the environmental crisis has paralyzed the actions of large foreign investors, particularly those who embrace the concepts of good environmental, social and governance practices.

Valor says that Brazil’s image abroad is very frayed.

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