Brazil's Rousseff Faces Higher Odds of Losing Job, Eurasia Says

Can Rousseff and Levy Hang On to Power in Brazil?

The odds have increased that Brazil’s President Dilma Rousseff won’t finish her term as the political and economic crisis grows worse, political consulting firm Eurasia Group said.

Eurasia in a report published Monday boosted the chances that Rousseff will leave the presidency before her mandate ends in 2018 to 40 percent from 30 percent. It also downgraded its long-term outlook on Brazil to negative from neutral.

The move comes less than a week after Standard & Poor’s cut Brazil’s sovereign-credit rating to junk on signs that a shrinking economy and dissent in Congress are making it difficult for the government to close its budget gap. The real and Ibovespa stock index tumbled the day after the downgrade.

"Either the president regains minimal conditions of governability and prevents fiscal accounts from unwinding more materially, or she won’t finish her term," according to the Eurasia report.

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