Minimising Brazil’s economic pain
Crucial government steps are needed to offset imminent financial distress caused by bottomed-out oil prices and a global health pandemic
The combined effects of Covid-19 on reduced economic activity and oversupply of oil in the international market is a worrying omen for Brazil’s fiscal health and companies operating in the county’s energy sector. Fears and uncertainty about the spread of the virus, which just weeks ago was a localised Chinese phenomenon, have spread into a global crisis weighing down demand prospects and lowering oil prices. World economic growth projections have been revised down to just c.1.5pc, and Brent has plummeted to its lowest level in the past 18 years. Against this background, and with the price crash of 2014 still fresh in the memories of many investors and managers, the global response to the
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