EFTA Document EFTA01368599

due to high political uncertainty reflecting Rousseff's lack of support in Congress, the "Car Wash" investigation and the economic crisis. Therefore, the risk remains on the downside, as the government could fail to obtain political support to minimally shore up the fiscal accounts, leading to greater financial and economic instability. We cut our 2015 GDP forecast to -2.8% from -2.3%, and our 2016 GDP forecast to -0.5% from - 0.2%. We expect fixed-asset investment to plunge roughly 11% this