That said, optimism in Latin America's largest economy has been brewing over the past three months since Temer took over.
"Businesses and consumers are feeling more positive and [2017 GDP] estimates are now slightly positive, but at least they're positive," said Ricardo Mendes, managing partner at Prospectiva Consulting, a Sao Paulo-based firm.
A key factor in the optimism surrounding Temer's administration is the prospect of economic and political reforms, including lower government expenditures, Murta said.
However, Mendes said "depending on who you talk to, sentiment is too positive," particularly within financial markets.
"Investors are looking at Brazil as sort of stable" amid Brexit and the U.S. election, he said. "There's a lot of money coming back into Brazil."
The iShares MSCI Brazil Capped ETF (EWZ) has risen nearly 17 percent since Temer took over, and it's up more than 60 percent year to date.
EWZ in 2016Source: FactSet
But Mendes said investors need to be cautious, since Temer may face opposition in passing reforms.
Along those lines, Citi said in a Thursday note to clients:
Facing resistance in Congress, Temer administration backs down from insisting on certain spending controls in the original bill. Meirelles said state spending cap should be voted by state legislatures and may not become part of constitutional amendment (PEC). Raises concerns that resistance on reforms is higher and spending cuts more difficult than thought. Also growing displeasure from PSDB against government making concessions.
There is also the small possibility that the Brazilian Senate votes against impeaching Rousseff, which would lead only to further uncertainty.
"Brazil is in the middle of a perfect storm that hasn't ended," said Atlantic Council's Murta.
— Reuters contributed to this report.
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