Russia’s credit rating rises; Brazil’s falls
Sanctions can be good for deleveraging
BRAZIL and Russia, the third- and fourth-biggest emerging economies, have much in common beyond their size. Each boasts annual GDP per person of around $10,000, which depends more than either would like on natural riches. After commodity prices tumbled in 2014, their economies shrank and their currencies sank. Their central banks have fought hard against the ensuing inflation, driving it below 3%. That has allowed both to cut interest rates, contributing to modest economic recoveries.
But their fiscal fortunes have diverged. Brazil’s credit rating was cut by Fitch on February 18th, making its sovereign bonds even “junkier” (ie, more speculative). Russia’s rating, by contrast, was raised a few days later by S&P Global, which became the second agency to rate Russian sovereign debt as “investment grade”.
This article appeared in the Finance & economics section of the print edition under the headline "Putin’s fiscal fortress"
Finance & economics March 3rd 2018
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- China starts unwinding Anbang, its would-be financial giant
- Russia’s credit rating rises; Brazil’s falls
- Capital is on its way to America, but for bad reasons
- Hong Kong and Singapore succumb to the lure of dual-class shares
- New research suggests the dollar’s level drives world trade
- Labour-monitoring technologies raise efficiency—and hard questions
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