The largest South American economy is considered the region’s most vulnerable by economists in June's ECR risk survey, amid an EM bond and equity sell-off.
Economic scores for Latin America decreased by an average of 0.4 points in June, while the overall risk assessment of LatAm economies deteriorated by 0.2 points on average.
Brazil was the region’s worst performer in the survey this month, after analysts knocked one point off the country’s economic score.
“Few EMs have been spared during the market sell-off over the past month, but those in Latin America have been hit particularly hard,” reports Capital Economics.
The likelihood of slower inflows into Latin American capital markets amid tighter monetary conditions in the US and China is weighing negatively on country risk scores for the region.
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