Today, we cover the outlook of Brazil’s economic recovery. How soaring food prices are worrying the government. And the state of Covid-19 in the country.
Brazil’s feeble recovery becomes even more uncertain
This week Geneva-based consultancy Horizon released its Covid-19 Economic Recovery Index Ranking, analyzing how 122 countries are positioned for recovery. Brazil was ranked in a rather underwhelming 51st position.
BRICS. During last year’s BRICS Summit in Brasília, we argued that the BRICS alliance had become more like ‘China & Co.’ Horizon’s study corroborates this view: China was ranked as the best-performing emerging economy (32nd overall), ahead of Russia (36th), Brazil, India (63rd), and South Africa (77th, the worst among G20 nations).
Latin America’s recovery potential. Many of the region’s middle-income countries, such as Brazil, Mexico, Colombia, Ecuador, and the Dominican Republic have been rated as having a reduced capacity to absorb short-term shocks and lacking the capacity for quick recovery.
Brazil. The country’s “high dependence on vulnerable industries, immense income inequality, and less-than-optimal job market performance” are ranked as the main factors holding Brazil back.
Why it matters. The obstacles for a faster recovery listed by Horizon tend to increase in the short term. While the coronavirus emergency...