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Reasons for optimism in Colombia and Brazil?

Populist Rodolfo Hernández is now the favourite to become Colombia’s next president and this has buoyed local financial markets this week, but we think that the scope for a further rally is limited. Elsewhere, the past week has brought further signs that Brazil’s recovery is strengthening and the risks to our above-consensus GDP growth forecasts are now skewed to the upside. We are sending this Weekly two days earlier than usual because Capital Economics’ London office is closed on 2nd – 3rd June for the Queen’s Platinum Jubilee celebrations.

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