Making matters worse is Brazil’s budget deficit, which as Bloomberg notes, is the worst among any major economy. Plus, Brazil’s interest rates are among the highest in the world, putting a pinch on consumer spending.
[related_stories]Brazil’s budget deficit has widened to 9.5% of GDP. Additionally, lower commodity prices, diminishing consumer credit boom and a corruption scandal at state-run oil giant Petroleo Brasileiro have all weighed on the economy. [Corruption Probe Plagues Brazil ETF]
Corporate distress, including ratings downgrades and rising bankruptcies, are among the other issues afflicting Brazil’s economy, according to Bloomberg.
iShares MSCI Brazil Capped ETF
