Fitch: Brazil’s economy is on course to shrink 4% in 2020, with risks tilted to the downside

Fitch recently came out with its economic assessment of Brazil. The rating institute lowered its outlook on Brazil’s sovereign debt to negative from stable.

Despite maintaining the BB- credit rating, the rating giant said, “Brazil’s economy is on course to shrink 4% this year, with risks tilted to the downside and vulnerable to further shocks from coronavirus, whose duration and intensity is hard to determine.”

Elsewhere, Brazilian Health Ministry released coronavirus (COVID-19) figures for Tuesday. The report marked an increase of 6935 confirmed cases to 114,715 with total deaths rising to 7,921 from 7,321.

It should also be noted that the nation’s major city São Luis becomes the first one to declare lockdown on Tuesday.

FX implications

Amid all these catalysts, USD/BRL takes rounds to 5.5802 without major registering changes as traders await Brazilian markets to open.