The re-election of Dilma Rousseff as Brazil’s president unsettled commodities markets in a country facing economic woes.
Brazil is in recession, facing weakening demand from Europe. Inflation is high, the currency exchange rates are falling and the stock exchange is volatile. Rousseff’s economic policies have been loudly criticized by Brazilian business leaders including many in the coffee industry. Rising commodity prices for sugar and arabica coffee remain critical to the economy. Coffee industry observers expect the appointment of new finance and agricultural ministers and new policies to resume growth.
Rousseff’s Workers’ Party is credited with lifting 40 million from poverty, reducing unemployment, and insuring food security since coming to power in 2003. However, popular housing programs, vocational schools, and an expansion of credit depend on continued economic growth. Rousseff won 51.6% of the vote amid allegations of corruption in the closest and most divisive election in 30 years which may make it difficult for her to assemble a coalition government.