Brazil Power Q1 2019
The election of Jair Bolsonaro to President of Brazil has not dispelled uncertainty over power sector policy, particularly inrelation to the privatisation of assets owned by state-owned utility Eletrobras. We expect the market will offer significantopportunities in the form of tenders for new power generation projects and transmission lines, with the non-hydrorenewables sector poised to outperform. At the same time, we see downside risk to Brazil's economic growth over the comingyears, as the government could disappoint market expectations on economic reforms and trigger a shift in investor sentiment.
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