The Moody's note mentions Brazil, Chile, and Mexico as three of the countries whose private spending growth will be significantly attenuated by the high inflation rates they are experiencing.
Moody’s, the asset quality rating agency, has warned the high rate of inflation that some countries are facing in Latam will affect the economic recovery in the region. Brazil, Chile, and Mexico are said to be the countries more affected by this phenomenon, and their recovery will depend on other factors to attenuate the effects of inflation.
by asset quality rating agency Moody’s stresses that inflation will be a decisive factor in the future of the economic recovery of the area.The note mentions Brazil, Chile, and Mexico as three of the countries whose private spending growth will be significantly attenuated by the high inflation rates they are experiencing. However, other factors will also be relevant when it comes to this spending recovery.
rate was a touch below its highest number in 21 years. Moody’s explains the large amount of people outside of the formal job system will aggravate this issue because the company expects few raises for workers in these conditions.Brazil, on the other hand, has an advantage when compared to Mexico, because the work market has high levels of formality, and companies are more inclined to issue wage increases to keep them in line with the high inflation rates.
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