Brazil

Bloomberg analysts noted that LATAM equities are outperforming globally YTD amid political stability, continued remittance inflows, rate cuts, and strong trade fundamentals. Analysts highlighted Brazil’s central bank will likely reduce rates from 14.75% to 11.25% by 2026. Risks include US tariffs and weaker Chinese demand. May’s LATAM’s Fund Manager Survey showed 53% expect Brazil to outperform.