Brazil Economic Recovery Likely To Slow As Aid Reduced

• Brazil's relatively rapid economic rebound is likely to decelerate over the coming quarters as the government reduces stimulus spending.
• Fitch Solutions revised its forecast for real GDP growth to -4.7% in 2020 and 3.5% in 2021, from -5.3% and 3.2% previously, following a stronger than expected rebound in Q3 2020.
• However, a weak outlook for structural reforms suggests that investment will remain weak over the coming quarters, limiting Brazil’s medium-term growth potential.

(Source: Fitch Solutions)