The third virus wave currently underway in Mexico, driven by the contagious Delta variant, will probably weigh on activity this quarter. But, for now, we don’t think that it will derail the economic recovery. Elsewhere, the falling popularity of Brazil’s President Bolsonaro and the spectre of impeachment seems to have bolstered the president’s demands for higher public spending. This could be a running theme in the run-up to next year's election, suggesting that fiscal risks will intensify once again.
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