Brazil's Reform Outlook Remains Weak Despite New Congressional Leadership

• Fitch Solutions believes the election of Brazil President Jair Bolsonaro's favored candidates to the leadership of Congress will reduce near-term risks to his administration's stability.
• However, it remains downbeat on the outlook for fiscal reforms, particularly given a focus on enacting additional emergency aid over the coming weeks.
• Market pressure could spur legislators to become more supportive of fiscal reforms, although it anticipates volatility in sentiment over the coming months.

(Source: Fitch Solutions)