INSUBCONTINENT EXCLUSIVE:
The recent election of Donald Trump as the next U.S
swiftly to implement convincing spending cuts
dollar briefly surpassed R$ 5.86, while interbank deposit rates jumped above 13% for various maturities.This reaction stems from
Economists stress the urgent need for fiscal adjustment in Brazil.Alexandre Espirito Santo, an economist at Way Investimentos, believes the
government must now implement fiscal adjustments forcefully
(Photo Internet reproduction)Finance Minister Fernando Haddad announced the completion of ministerial meetings to discuss fiscal measures
This news helped stabilize the dollar and interbank deposit rates.However, Haddad did not provide specifics about the planned actions
The government is considering placing health and education spending limits under a general ceiling.This proposal aims to align these
expenses with the fiscal framework approved last year
However, Brazil seems to be more affected than others.Igliori believes that substantial and credible spending reductions of R$ 40 billion to
bring the rate to 11.25% per year
expectations, some economists believe the market may test a 75 basis point increase for the Selic rate in the next meeting.In short, this
underscores the complex economic landscape Brazil faces in light of both domestic and international pressures.
