There’s a growing acknowledgement that Brazil’s 2019 pension reform didn’t go far enough to ease fiscal pressures from the social security system. Indeed, Brazil is likely to see one of the largest rises in public pension spending of any major economy between now and 2050. And it comes against the backdrop of already strained public finances. A fiscal crisis isn’t imminent, but the pension problem will need to be tackled in the next presidential term – otherwise, the risk of a bond market backlash will build.
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