Minister highlighted that, according to projections, debt could reach 81.4% of GDP in 2025 and 99% in 2029
The Minister of Finance, , expressed his concern regarding Brazil’s public debt, which continues to grow, in an interview with CNN. He highlighted that, according to projections, debt could reach 81.4% of GDP in 2025 and 99% in 2029. This critical financial situation puts the country in a delicate position, especially in a scenario where the nominal deficit is expected to be second largest in the world by 2025, estimated at 8.6% of . Regarding the exchange rate, Haddad stated that the value of the dollar, currently above R$5.70, is considered high. Although he highlighted that the exchange rate fluctuates and that he would not make specific recommendations on the purchase or sale of the currency, he made it clear that he would not make acquisitions at that price. This statement reflects the government’s concern about the appreciation of the dollar and its implications for the economy.
The Brazilian government is implementing a cost containment package, which aims to generate savings of R$68 billion over two years. However, the financial market considers that this measure may be insufficient to face the fiscal challenges that the country faces. The need for a more robust adjustment is a constant concern among analysts and investors. Haddad also addressed the issue of taxation, defending the implementation of a more progressive Income Tax. He argued that it is essential that individuals with higher incomes contribute more significantly, thus promoting greater tax fairness. This proposal aims to balance the fiscal burden and ensure that resources are directed to essential areas of the government.
Published by Sarah Paula
*Report produced with the help of AI
