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Further upside surprises to come in Brazil

A string of better-than-expected activity data from Brazil has pushed consensus GDP forecasts for 2017 and 2018 towards our own, more bullish, view. While some of the tailwinds that have helped the early stages of recovery will fade over the coming quarters, new ones are likely to emerge. Accordingly, we think the consensus may still be underestimating the pace of recovery over the next couple of years.

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