Brazil Economy Outshines Mexico in Surprise Role Reversal

While Bolsonaro’s government has been roiled by corruption scandals and rifts with Congress, his high spending has brought brightening political fortunes.

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 . . .

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