Will Brazil be an emerging market that never quite emerges? In the 2000s, the Latin American giant was making impressive progress in converging with developed economies. But since the global financial crisis of 2008, it has surrendered most of these gains. Today, the Covid-19 pandemic is hitting the country hard, threatening not only the health of its citizens but its reform momentum as well.
Brazil is not alone among the Latin American countries in failing to flatten the coronavirus curve. Only Peru and Chile seem to be managing to do this. But alongside Mexico, Brazil stands out as suffering excessively from political interference, with President Bolsonaro sowing division and weakening the de facto restrictions adopted to prevent the spread of the virus.
The outcome has been disastrous. The country’s total cases have hit 1 million with 80,000 deaths, and Brazil now accounts for almost 60% of the cases in Latin America. There are also concerns that the true infection rate is significantly higher than reported.
View Full Article – published by Aberdeen Standard Investments on 3rd August 2020
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