Brazil and South Africa: Two Continental Giants with Feet of Clay
With Brazil and Africa both reeling from sizeable economic slowdowns, we discuss the hurdles for each and detail which country's outlook appears more favorable.
Brian Levine is an Associate on the Global Macroeconomic Research Team at PGIM Fixed Income. Mr. Levine is responsible for maintaining the team’s sovereign credit ratings model, providing coverage for countries in the CIS region, and further developing the Firm’s sovereign ESG framework. Prior to joining the Firm in 2018, he worked for the Federal Reserve Bank of St. Louis in the Bank’s research department. Mr. Levine received a B.S. in Economics and Mathematics from Bentley University.
PGIM Fixed Income shares our constructive, medium- to long-term growth outlook for the Sub-Saharan Africa (SSA) region, recognizing that growth is a crucial component of debt sustainability. The paper then assesses key longstanding features of SSA economies such as their economic dependence on commodity exports, population growth, fiscal policies, and governance. Lastly, we review how well SSA countries are prepared to tackle the challenges of climate change across the region.
All information as of March 31, 2021. For purposes of the biographies, the “Firm” is defined as Prudential Financial, Inc. ("PFI"). All PGIM and Prudential named entities are subsidiaries or affiliates of PFI. PFI of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.