Brazil's Next President Faces Fiscal and Congressional Hurdles

Brazil's presidential runoff enters its final stretch with a tight race, as polls show challenger Flávio Bolsonaro holding a slight edge over incumbent President Lula despite the latter's recent policy push and social media campaign. The next president will face significant challenges, starting with a fragile fiscal situation complicated by revenue losses, recent social spending, and campaign promises requiring resources. Building a solid parliamentary base is another hurdle, with Bolsonaro's PL party having won the largest congressional delegations, potentially easing his path to governability compared to Lula. Given the deeply polarized campaign, analysts expect any post-election honeymoon with the public to be short-lived, which could increase governance costs for the winner.