Part 5/7:
Curiously, during the same announcement, President Lula hinted that he might not seek re-election in 2026. This comment sparked optimism among investors. The prospect of Lula stepping down possibly opens the door for a more favorable government that could lead to better economic conditions in Brazil. Many investors are now looking at the Brazilian market as a possible opportunity, expecting improvements in economic stability post-Lula.
However, there remains uncertainty surrounding the political landscape as Brazil approaches the next elections. Should Lula run for re-election, the risk of economic downturns may persist, particularly considering the history of left-leaning governments controlling Brazil's economy.