Skip to main content

Brazil’s fiscal framework already on the rocks

Media reports that Brazil’s government is already seeking to water down the latest fiscal rule (which has been in place for less than a year) reinforces the point we made when the rule was first unveiled that the Lula administration would be unable to hit the fiscal targets. With the public debt-to-GDP ratio set to rise, it’s hard to see credit spreads in Brazil remaining at their current very narrow level. Fiscal slippage also provides another reason to think the central bank will soon slow the pace of monetary easing.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access