FTAdviser.com

Advertising

Although governments had moved fast to reduce the impact of the virus, the Lloyds Banking Group division said it would still have a negative effect, albeit not enough to derail the area's economic evolution.

Jeff Casson, investment director for global emerging market equities, said authorities had used stimulus measures such as interest rate cuts to help encourage short-term domestic growth.

Over the longer term, he added, themes such as population growth and urbanisation would continue to drive expenditure in sectors such as infrastructure.

Mr Casson said demographic expansion in the region was accompanied in some cases by social aspirations and strong consumer growth.

"Brazil, for example, has seen a burgeoning middle class that has increased by 20m people over the past two years," he said.

"Relative to its western counterparts, this middle class is not as extended credit-wise, so there is an opportunity for financial services companies to develop their existing range of products."