O foreign capital flow Brazil should not suffer interruptions with the 2026 presidential elections, regardless of who is elected. The assessment was made by Marcelo Mello, CEO of SulAmérica Investimentos, during an interview with Capital Insight.
According to Mello, there are two possible scenarios for the next government. In the first, if the current ruler is re-elected, the flow of foreign investment should continue, although depending on the signs in terms of fiscal policy. “I don’t consider that the incumbent is going to make a break,” he stated.
The executive highlighted that a fiscal adjustment will be necessary, which should happen either in the current government or in the next. “A fiscal adjustment will be necessary and I think it will happen either in this government or in a new one that will be elected”, he explained.
Intensity differences
If a new government official is elected in 2026, Mello believes there will be “an appetite for a greater intensity of fiscal orthodoxy.” However, he emphasized that these are not different directions for the economy, but rather different intensities in the policies adopted.
“I don’t think we’re talking about different directions. We’re talking about different intensity”, he highlighted. Mello concluded that there is no rupture scenario in his projections, just variations in the intensity of economic policies that will need to be monitored over time.
