Wall Street Jedi
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Wall Street Jedi
No Result
View All Result
Home Stock

Brazilian government officials renew fiscal balance pledge

by
January 22, 2025
in Stock
0
Brazilian government officials renew fiscal balance pledge
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

SAO PAULO (Reuters) – Brazilian government officials on Wednesday reaffirmed their commitment to balancing public accounts, as financial markets continue to question the ability of President Luiz Inacio Lula da Silva’s administration to meet its fiscal targets.

Lula’s chief of staff, Rui Costa, and Treasury Secretary Rogerio Ceron spoke out in favor of fiscal balance, opening the door for potential new spending containment measures if needed to achieve previously set goals.

The government says it likely ended last year with a deficit of 0.1% of gross domestic product, within its zero-deficit target that had a tolerance margin of 0.25% of GDP in either direction.

However, uncertainties regarding the achievement of fiscal targets in the coming years and analysts’ projections pointing to a rising debt trajectory have weighed on market sentiment, contributing to recent weakness in Brazil’s currency.

“The president has reaffirmed and has been fulfilling his commitment to fiscal balance,” Costa said in an interview with state-run broadcaster TV Brasil.

“When needed, at any time, we will make the necessary adjustments so that the fiscal commitment is met. The government can only spend what it collects, otherwise it generates inflation and bad expectations for the country.”

A long-anticipated package of spending cuts disappointed markets late last year, further weakening Brazil’s real, which weighed on inflation expectations and contributed to the central bank’s monetary policy tightening.

Itau economists noted on Tuesday that the credibility of the government’s fiscal framework for generating sustainable fiscal trajectories in the medium term, even if strictly adhered to, had “deteriorated significantly.”

That was due to the perception that the rule does not offer the prospect of stabilizing public debt unless there is a significant increase in revenues, they said in a report, while noting that the risk of non-compliance had increased.

But Ceron questioned market views and, echoing Costa, reiterated the government’s commitment to the fiscal rules.

“Our greatest divergence with the market is that it believes there is still a large gap for us to be able to meet the fiscal target this year, so new measures would be needed,” Ceron told radio station Gaucha.

“But the targets will be met. If measures are needed, they will be taken. Our commitment to meeting fiscal targets is guaranteed. They will be achieved, just like we achieved them in 2024.”

($1 = 6.0028 reais)

This post appeared first on investing.com
Previous Post

‘Moana 2’ tops $1 billion, extending Disney’s box office domination

Next Post

LNG exporter Venture Global cuts target valuation for US IPO to $65.33 billion

Next Post
LNG exporter Venture Global cuts target valuation for US IPO to $65.33 billion

LNG exporter Venture Global cuts target valuation for US IPO to $65.33 billion

  • Trending
  • Comments
  • Latest
American creating deepfakes targeting Harris works with Russian intel, documents show

American creating deepfakes targeting Harris works with Russian intel, documents show

October 23, 2024
Cadence raises midpoint of 2024 profit forecast on robust demand from chip designers

Cadence raises midpoint of 2024 profit forecast on robust demand from chip designers

October 28, 2024
Earnings call: Microsoft sees soaring cloud and AI growth in Q1 FY2025

Earnings call: Microsoft sees soaring cloud and AI growth in Q1 FY2025

October 31, 2024
Israel stocks lower at close of trade; TA 35 down 0.23%

Israel stocks lower at close of trade; TA 35 down 0.23%

October 6, 2024
Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

0
Retailers scramble to move billions in cargo as East Coast dockworkers prepare to strike

Retailers scramble to move billions in cargo as East Coast dockworkers prepare to strike

0
PepsiCo to buy tortilla chip maker Siete Foods for $1.2 billion

PepsiCo to buy tortilla chip maker Siete Foods for $1.2 billion

0
East and Gulf coast ports shut down as thousands of workers go on strike

East and Gulf coast ports shut down as thousands of workers go on strike

0
Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

July 4, 2025
Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

July 3, 2025
Microsoft laying off about 9,000 employees in latest round of cuts

Microsoft laying off about 9,000 employees in latest round of cuts

July 3, 2025
Apple sues former Vision Pro employee for allegedly stealing ‘thousands of documents’ before joining Snap

Apple sues former Vision Pro employee for allegedly stealing ‘thousands of documents’ before joining Snap

July 2, 2025

Recent News

Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

July 4, 2025
Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

July 3, 2025
Microsoft laying off about 9,000 employees in latest round of cuts

Microsoft laying off about 9,000 employees in latest round of cuts

July 3, 2025
Apple sues former Vision Pro employee for allegedly stealing ‘thousands of documents’ before joining Snap

Apple sues former Vision Pro employee for allegedly stealing ‘thousands of documents’ before joining Snap

July 2, 2025

Disclaimer: WallStreetJedi.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 wallstreetjedi.com | All Rights Reserved

No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock

Copyright © 2025 wallstreetjedi.com | All Rights Reserved