Latin America Abandons Fuel Subsidies in Shift to Austerity
- Brazil, Argentina and Mexico join Colombia in market prices
- Moody’s says countries reacting to enourmous fiscal pressure
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Latin America’s major economies are phasing out expensive fuel subsidies as they shift to fiscal austerity in the aftermath of the commodities bust.
Brazil, Argentina and Mexico have recently joined Colombia in bringing pump prices to or near international levels in a move Moody’s Investors Service said has a positive impact on risk perception by shoring up government budgets. So far the policies are surviving street protests in Mexico and low approval ratings in Brazil.