Latin America’s Two Biggest Economies Surprise With Stronger Growth

Both nations working to tame fast inflation with high rates.

“Stronger growth suggests that core inflation could remain higher for longer.”

Both economies have hiked interest rates aggressively to tame post-pandemic inflation, with Brazil’s borrowing costs at 13.75% and Mexico’s at 11.25%, among the highest rates within the Group of 20 countries.

Brazil and Mexico surprised investors with stronger-than-expected growth in data published Friday, indicating Latin America’s largest economies are holding up amid high interest rates and fast inflation.