Brazil's Presidential Election Goes to a Runoff

It was too close to call. The two leading candidates for President of Brazil, incumbent President Jair Bolsonaro and former President Luiz Inácio Lula da Silva (better known as Lula), both received less than 50% of the vote. In Brazil, a runoff election is then held between the top two candidates to determine the winner.

It was widely expected to be a close race with Lula having the upperhand according to recent polling. In fact, some polls even speculated that Lula could get more than 50% of the vote and avoid a runoff. But now, voters will head back to the polls later this month to cast their deciding ballots. The runoff is scheduled for October 30.

This means one thing: the direction that Brazil goes over the next 4 years remains unclear. We mentioned before the impact this uncertainty brings to foreign investors, particularly as it relates to currency fluctuations. And for Brazilians, it adds yet another month of political bickering and the risk for more violence.

Elections in Brazil are different from the US in that they are conducted at the federal level. The Tribunal Superior Eleitoral, a federal elections court, is responsible for managing the process and tallying the votes across the country. Another difference is that Brazil’s constitution requires that all Brazilians vote unless they qualify for one of just a few exceptions.

How this all plays out is anyone's guess. But now we know for certain that a former President of Brazil will once again be president.