Key View: Brazil has seen the risks of political and economic instability become exacerbated over the last few quarters as popular discontent for the political system has risen, coupled with the uncertainty surrounding the economic agenda of the incoming administration of the President Jair Bolsonaro. However, the country’s rewards partly offset

Key View

• We at Fitch Solutions forecast Brazil will run a current account deficit of 0.8% of GDP in 2018 and 1.3% in 2019, which is relatively narrow compared to the 3.3% average shortfall between 2010-2015.
• Capital inflows will likely cover external financing needs over the coming quarters, which will limit risks to external account stability

Key View

Key View:

• Amended spectrum ownership rules will come as a relief for capacity-constrained players.
• The sale of struggling Nextel Brasil can now proceed as its valuable spectrum holdings can now be more easily digested by buyers.
• Long-overdue consolidation within the wider mobile market can begin in earnest, but will lead to only incremental

Key View

• Brazilian President-Elect Jair Bolsonaro will likely pursue a more nationalistic foreign policy than his predecessors, driven by domestic political considerations.
• The country’s ties to the US and the region’s centre-right administrations will warm, while previously close relationships with leftist governments will deteriorate.
• That

Jair Bolsonaro, who stems from the Social Liberal Party, has been elected President of Brazil. He garnered 55.1% of the valid vote, defeating Fernando Haddad of the leftist Partido dos Trabalhadores (PT), who received 44.9%, in the second round vote on October 28. Bolsonaro's election victory was in line with our view (see 'Brazil Elections

Key View

• Despite elevated trade tensions between the US and China, we expect some soybean trade between the two countries to resume in the coming months as the Brazilian 2017/18 export season ends, but China will revert back to Brazilian soy as soon as it can when the 2018/19 harvest starts in Q119.
• Brazilian soybean prices, which have recently

Editor's Note

The questions and answers below broadly reflect an assumption that Jair Bolsonaro will win the second-round election on October 28. We assign a 70% probability to this outcome.

On October 10, Fitch Solutions hosted a webinar outlining our key views on Brazil's political and economic outlook following the first round of its general

Key View

• MVNOs in Brazil have had a very limited impact in a price-competitive market.
• Opportunities lie in niche services, attracting low-cost subscribers not targeted by traditional players and regulatory reform.

MVNO Porto Seguro has announced plans to exit the Brazilian mobile market. It began operations in 2012 using TIM as its host to

Key View

• ANVISA's proposal to establish a dedicated regulatory framework for personalised medical devices will speed up market access for custom-made and patient-specific devices.
• The proposed regulations will provide consistency and transparency in a fast-developing sector.
• The move will support the increasing use of personalised devices in