Brazil: Haunted By Recurring Demons
Brazil’s two macro demons – a rising public debt-to-GDP ratio and inflation – have resurfaced and will worsen over the coming months. Yet, President Lula will pay lip service to fiscal concerns without enacting meaningful cutbacks. In addition, a politicized COPOM will cut rates aggressively next year and fall behind the inflation curve. All in all, the selloff in Brazilian markets still has legs.
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BCA Research | Emerging Markets Strategy
Critical input for global and EM investors as it provides global macro investment themes as well as recommendations for EM equities, currencies, and fixed income.
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