Brazil has the most vulnerable economy among a group of 18 emerging countries.
An indicator developed by the Federal Reserve (the American central bank – FED) points out that Brazil is the second most vulnerable to external financial adversities among a group of 18 emerging countries; according to the document, Brazil is ahead only of Argentina. Brazil's vulnerability is linked to the performance of its public accounts, due to the ratio of gross debt to GDP, considered the highest among the countries analyzed.
247 - An indicator developed by the Federal Reserve (the American central bank – FED) shows that Brazil is the second most vulnerable to external financial adversities among a group of 18 emerging countries. Brazil is ahead only of Argentina, according to the study updated by the coordinator of applied economics at the Brazilian Institute of Economics (Ibre) of the Getulio Vargas Foundation (FGV), Armando Castelar. Following Brazil are Turkey, Colombia, and India.
According to the document, prepared in 2014 and now updated, Brazil's vulnerability is linked to the state of its public accounts, due to the ratio of gross debt to GDP, considered the highest among the emerging countries analyzed.
According to Castelar, the Fed's indicator was updated based on international conditions stemming from the exchange rate increase and the rise in US Treasury bond interest rates. "It was no coincidence that the real was the third currency [among the 18 economies analyzed] that depreciated the most between the beginning of April and May 21, behind only the Argentine peso and the Turkish lira," Castelar told the newspaper Valor Econômico.
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