Brazil’s Zero-Deficit Target Unlikely to Survive Slowing Economy
- Lula government pledges to eliminate budget deficit in 2024
- Genial’s Camargo says growing spending would spell disaster
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It’s only a matter of time until President Luiz Inacio Lula da Silva ditches his own government’s zero-deficit fiscal target to keep spending big as Latin American’s largest economy loses steam next year, according to Genial Investimentos.
Assurances by the ruling Workers’ Party that it will respect Finance Minister Fernando Haddad’s strategy to eliminate Brazil’s primary fiscal deficit in 2024 will not hold true as public spending will outpace tax collection, Jose Marcio Camargo, chief economist at Genial, said in an interview in Rio de Janeiro.