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Dilma Rouseff has been re-elected as Brazil’s President for the second time. But the 66-year-old socialist’s victory came as a disappointment to the country’s stock market which was routing for a more market friendly choice.
Brazil’s bellwether Bovespa Index lost over 10 per cent in the last two weeks after her likely win became apparent. Her victory belied initial expectations of anti-incumbency as middle class voters — who benefited from Rouseff’s welfare programmes — cast their ballot in her favour.
Rouseff, the first woman to serves as Brazilian President, is widely seen responsible for the current economic mess. Poor public services, sky-high prices and numerous corruption scandals , in addition to socialist policies pursued by Rouseff, are widely believed to have put the economy in deep distress.
The country’s official Budget deficit is already at 4 per cent of GDP; speculation is rife that the actual number could be much higher. Undercapitalised banks and the falling real have led to a flight of foreign capital and the country’s sovereign rating was downgraded to junk by Standard & Poor’s.
Nevertheless, post the election verdict, Rouseff has said that she wants to be a ‘better President’ and has pledged to reduce inequality.
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