President Mauricio Macri’s administration is optimistic that Dilma Rousseff’s impeachment could lead to a “normalization” of Brazil, which, in turn could help Argentina’s economy get out from its current slump. The Brazilian economy is expected to contract around three percent this year. Cabrera also mentioned that the Brazilian real did not continue to depreciate and there are signs that the Brazilian economy could have at the very least moderated its losses. Rousseff’s impeachment comes at a time when Argentina’s economy is clearly struggling to get out of its own recession. All this bad news comes on the heels of news that the economy shrank 4.3 percent in June, year-on-year.

Source: The Bubble September 01, 2016 17:03 UTC