NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has published a research piece titled U.S. Stimulus: Uneven Impact on LATAM. In this research piece, Kroll Bond Rating Agency (KBRA) explores real effective exchange rate and trade data to measure the positioning of select Latin American (LATAM) economies to benefit from a robust U.S. recovery. Latin America is among the hardest-hit regions in the world by COVID-19, and domestic demand in the area is expected to remain relatively weak due to sluggish vaccine rollouts, constrained pandemic-related support, and the rising yield environment. All of these factors add friction to recovery. This piece explores the likelihood LATAM economies would receive a meaningful boost from trade of goods with the U.S.
The main takeaways:
- REER depreciation makes many emerging market export sectors more competitive, in aggregate.
- Relative lack of trade openness of LATAM countries constrains benefits from trade.
- Mexico is by far the most likely economy to benefit from U.S. stimulus and recovery.
Click here to view the report.
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