Four years ago, Brazil had one of the world’s most dynamic economies, while low-growth Mexico was shunned by EM investors seeking higher returns elsewhere. Fast forward to 2014, and Mexico is now the poster child of the emerging markets following a series of ground-breaking economic reforms. In Brazil, growth has slowed to a trickle against a backdrop of policy deadlock and a deeply divisive Fifa World Cup. Euromoney Country Risk data illustrate how changing perceptions of the two countries’ risks drove performance of the domestic equity markets.
Videgaray pulls Mexico into shape October 2014 Mexico’s government has introduced a swathe of structural reforms that aim to cut key input costs in the economy, arrest deteriorating productivity and improve the country’s long-term growth rates. However, it is the finance minister’s recent energy reforms that have most made economists and investors buoyant about the outlook for Latin America’s second biggest economy.