RIO DE JANEIRO, BRAZIL - The indicators that reflect supply showed a stronger recovery of the Brazilian economy early in the year, but may be a "false positive," according to Morgan Stanley.
Placing greater emphasis on a scenario of weak demand, the bank's economic team for Brazil countered the latest wave of upward revisions and recently cut its estimate for Gross Domestic Product (GDP) growth this year.
"Despite all the improved data on the supply front, we see weak numbers from a demand standpoint, mainly due to the labor market," said André Loes, Morgan Stanley's chief economist for Latin . . .