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Sunday, August 10, 2014

Rousseff Maintains Poll Lead With Brazil Ballot Win Intact

Brazilian President Dilma Rousseff maintained her lead over her nearest challengers less than two months before elections, according to an Ibope poll that shows her winning a possible run-off.

Support for Rousseff’s re-election bid in the Oct. 5 election is unchanged at 38 percent from July, according to the August 3-6 poll, which has a margin of error of plus or minus two percentage points.

Candidate Aecio Neves is her closest challenger, with 23 percent compared to 22 percent in the previous poll published July 22.

While quicker inflation and slower growth have eroded support for Rousseff this year, increased welfare spending and falling unemployment are helping to sustain her lead.

Stocks rally when polls show her advantage slipping as some investors speculate the economy would improve under a different leader.

Rousseff’s advantage over Neves in a possible run-off vote on Oct. 26 slipped to six percentage points from eight percentage points last month, according to the Ibope poll of 2,506 people published yesterday.

The incumbent’s first-round support matches that of all the other candidates combined, which falls within the margin of error to force a second round.

Brazil holds a runoff if the lead candidate fails to garner more votes than all others put together. In interviews since her campaign officially began in June, Rousseff has said Brazil is poised to enter a new cycle of development with productivity gains from investment in education and infrastructure.

She told reporters July 28 that pessimism about the economy is unfounded, similar to the negative sentiment leading up to Brazil hosting the World Cup.

Markets, Economy

The Ibovespa index rose 2.5 percent the day after a poll conducted by Datafolha came out July 17, reversing two days of losses with the biggest increase in six weeks.

The poll, published after markets closed, showed no clear winner in a runoff between Rousseff and Neves. Economists surveyed by the central bank lowered their 2014 growth outlook to 0.86 percent from 0.90 percent a week earlier, according to a report published Aug. 4.

Brazil’s economy expanded 2.5 percent last year. Analysts in the same survey said inflation will end 2014 at 6.39 percent, which would be the fastest year-end rate since 2011 when Rousseff entered office. Policy makers target inflation of 4.5 percent, plus or minus two percentage points.

bloomberg.com

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