Recently proposed sovereign debt restructuring deals in Argentina and Ecuador, if they manage to get over the line, would help to shore up confidence and improve government finances over the coming years. But in both cases, we would still be concerned about long run debt sustainability. Elsewhere, news in Brazil this week that President Jair Bolsonaro contracted Covid-19 has taken attention away from the continued disappointing economic releases – these reinforce our view that the country's recovery from the crisis will be one of the weakest in the emerging world.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.