Key points:News of recession in Brazil and skepticism about President Dilma Rousseff’s track record and platform threaten Rousseff’s October reelection chances. In the first round of voting on October 5, Brazilians will decide whether maverick environmentalist Marina Silva or establishment opposition governor Aécio Neves da Cunha—both of whom offer free-market policies—will face Rousseff in an October 26 runoff. Brazilians will likely support the candidate most likely to spur economic growth and unlock Brazil’s productivity and wealth—meaning the stability and prosperity of a natural US partner are at stake.
Signs of economic stagnation and simmering popular dissatisfaction in Brazil could not have come at a worse time for President Dilma Rousseff, who is seeking reelection in October. According to midsummer polls, voters’ skepticism about her track record and statist platform appeared to open the door to a challenge from probusiness candidate Aécio Neves.