ECONOMIC (POLICY) UNCERTAINTY IN BRAZIL BEFORE AND DURING THE COVID-19 CRISIS

Abstract

There is a growing interest among economists and policymakers in examining economic (policy) uncertainty and its effects on the (overall) economy. This study examines the economic (policy) uncertainty in Brazil, the most populated country in Latin America, before and during the Covid-19 crisis, which has severely affected the Brazilian economy and society. Brazil was the first country in Latin America to report a confirmed case of Covid-19. This study finds that the Covid-19 crisis has contributed to an increase in economic (policy) uncertainty in Brazil. However, the increase was (more or less) short-lived. Data show that economic uncertainty in Brazil was at its peak in April 2020 and that economic policy uncertainty in Brazil was at its peak in March 2020.