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A Resilient Brazilian Economy Is Under Diverging Pressures

By Alessandra Ribeiro

While the central bank is trying to cool down economic activity, the government continues to implement demand-stimulating measures as elections loom.

SÃO PAULO—Brazil’s economy has rebounded after a brief slowdown. The country’s total economic output regained momentum in the first three months of the year, as a boom in agricultural production, paired with higher household consumption and investment, boosted the overall value of goods and services produced. This news could be seen as a welcome development in a year marked by profound global geopolitical shifts, and the nation prepares to elect a new president in fifteen months.  However, there’s a caveat: the momentum may not last. Brazil’s GDP grew 1.4% in the first...

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