Investment Insights: Brazil and Mexico Contrast in Latin America’s Pandemic Experience

Brazil faces fiscal issues while Mexico, in theory, has room to spend more, says the oldest Private Bank in Geneva, Switzerland. It sees highly selective value in LatAm equities and high yield corporate debt, while remaining cautious on the region’s currencies.

By Stéphane Monier, Lombard Odier Group, Geneva

RIO DE JANEIRO, BRAZIL - Images of green oxygen cylinders have come to symbolize a collapsing health system in the Brazilian city of Manaus, in the northern state of Amazonas. Covid-19 patients in the city of 2 million people are dying during a second surge in cases as medical supplies run out. The pandemic management in Latin America highlights policy differences, with far-reaching implications for economic recoveries.

The economic impact of slow-to-implement vaccination programs, coupled with the risk of rising inflation, have created risks for investors in the region . . .

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