RIO DE JANEIRO, BRAZIL - (Reuters) The divergence between Latin America’s two largest economies, Brazil and Mexico, is widening as the region’s most prominent left- and right-wing leaders adopt stridently different fiscal responses to the COVID-19 pandemic.
Their approaches, however, are not what would be expected - and investors are adapting accordingly.
The right-wing administration of President Jair Bolsonaro - which came to office last year pledging to lower public spending and cut Brazil’s debt - has opened the taps and spent billions on unemployment benefits.
Meanwhile, in Mexico, President Andres Manuel Lopez Obrador’s left-wing government . . .