GLOBAL MARKETS: Emerging markets back in favour
Investors have piled billions of dollars into emerging-market (EM) assets at the start of 2021 after a banner end to last year, showing how the flood of central bank stimulus continues to drive a frantic hunt for returns.
A group of 30 major developing countries has attracted $17bn in inflows in the first three weeks of January alone, according to a Financial Times analysis of daily data from the Institute of International Finance.
Hey, big spender
Brazilian President Jair Bolsonaro has outspent every other major EM, according to the Institute of International Finance, boosting central government spending almost 40% between January and November.
Most of the money was spent on "corona vouchers": a flat-rate temporary income boost for nearly a third of the population. The move lifted beer sales — and Bolsonaro’s popularity — but has proved ruinous for Brazil’s already shaky finances, with public debt now at over 91% of GDP.
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