A recent released report by HSBC alerts that Brazil and Russia economies are vulnerable. The report says that Brazil has problems in 5 out of 6 sectors: growth, public finance, external imbalances, capital flight and commodity dependence. It is only performing well in the real estate sector.

According to HSBC, Brazil is not doing anything concrete to recover its economy in the short term and it is already facing an economic recession.

Russia faces the same situation, with the prices of oil going down and inflation on the rise. Both Brazil’s and Russia’s GDP are expected to contract around 3% this year.

A slowdown in China economy may also contribute to reduce Brazil and Russia exports, since China may buy fewer products from them.