Economy

Politics prevent Latin America's recovery, but Brazil is exception, Moody's says

In a report for investors, the agency said that by 2020 analysts' view is that the environment for the region and emerging economies as a whole is negative

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  • Even at a slower pace, however, emerging economies are expected to grow more (4.5% on average) than developed economies (1.5%);
  • The agency also stressed that it does not expect negative growth for any major emerging market in 2020, with the exception of Argentina.

According to the rating agency Moody’s, Brazil is a notable exception in the Latin American scenario, where political tensions hinder the countries progress.

In a report for investors, the agency said that by 2020 analysts’ view is that the environment for the region and emerging economies as a whole is negative due to internal and geopolitical conflicts.

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“In many countries in Latin America and even in South Africa and Turkey, the policy prevents structural reforms. Brazil is a notable exception,” said the report, according to the Brazilian media outlet Estadão.

Even at a slower pace, however, emerging economies are expected to grow more (4.5% on average) than developed economies (1.5%). The agency also stressed that it does not expect negative growth for any major emerging market in 2020, with the exception of Argentina.