Macroeconomy/Finance

Brazil & Mexico adopt different fiscal policies to combat COVID-19

The divergence between Latin America’s two largest economies, Brazil and Mexico, is widening as the countries’ leaders adopt stridently different fiscal responses to COVID-19. While Brazil’s economy shrank by a record 9.7% in the second quarter, Mexico’s GDP plunged by a staggering 17.1%. Brazil’s Government spent millions on unemployment benefits, while Mexico’s Government has spent very little. According to the International Monetary Fund data, the bank pegged Brazil’s fiscal effort at a whopping 6.5% of GDP – dwarfing Mexico’s spending to just 0.7% of GDP.

Source: Gulf Today

Categories: Macroeconomy/Finance