Whoever wins the election will face a difficult fiscal year, says Galápagos CEO

The CEO of Galápagos Capital, Marco Antônio Bologna, assessed that the next government will face a challenging economic scenario, marked by geopolitical uncertainties, high interest rates and fiscal difficulties.

The speech was made during an event in São Paulo, this Tuesday (9), which brought together relevant names from the Brazilian economy and CNN Internacional anchor Richard Quest.

"Whoever wins the election next year will have a very difficult year ahead from a fiscal and economic activity point of view. And, mainly, with the level of interest rates, which should remain high. I hope there will be no new increases, but a drop in the speed and magnitude that we would like and that the country needs will not happen", said Bologna.

In an interview with CNN, Bologna highlighted statements by journalist and CNN International anchor Richard Quest about pressure from the market and the Donald Trump government in relation to the possibility of rising interest rates in the United States.

In the view of the Galápagos CEO, the international scenario continues to pose challenges to the Brazilian economy.

"From a geopolitical point of view, we have major challenges. We have many external winds that are not favorable. Internally, we have a very disputed election, leading to polarization. We continue to have the same problem that the world has, but, in this case [in Brazil], much more amplified, with an interest rate almost at 15%", he assessed.

The executive also highlighted his concern about the effects of the current level of interest on the productive sector, which, according to him, the main consequence could be the deterioration of companies' financial conditions and a reduction in investments.

Source: CNN