Spain and Portugal have regained cost-competitiveness. Exports are buoyant and current account swung back to surplus. Still, economic competitiveness requires an internal balance as well, which is not the case yet.
Brazil will be in the spotlights this year with the World Soccer Cup in June and the electoral cycle at the fall. The economy posted a weak performance over the past quarters, while its sticky inflation and deteriorating fundamentals raise lots of concerns.
