The main risks include impeachment of the president, the resignation of Finance Minister, Brazil losing the investment grade credit rating it currently has, and Petrobras debt collapsing due to the scandal. Dilma’s impeachment and a subsequent resignation of the finance minister would be chaos and pull the Brazilian economy to the lowest levels. Petrobras’ decline and a credit rating downgrade to junk are the two most likely risks to occur. The most important economic decision for Brazil is to reduce inflation and the finance minister has started to reverse many tax breaks given to certain industries and small businesses that will help the government’s cash position. By instituting these changes there will potentially be a primary surplus instead of a deficit.
On the political system area of the Diamond of Sustainable Growth, Brazilians give President Dilma Rousseff bleak ratings for her management of many key issues. Even with the low ratings from the citizens, Rousseff was able to win the October election by a very slim margin. The biggest issues that politically Rousseff needs to improve are corruption, crime, the economy, public works, educational system, and poverty across the