Brazil's government forecasts GDP to be at 79.6% in '23, and sets deficit forecast at 65.9 billion reais

Brazil's government forecasts GDP to be at 79.6% in '23, and sets deficit forecast at 65.9 billion r ...

Brazil's debt will reach 79.6% of gross domestic product in 2023, according to the Brazilian government, which will reach 80.3% in 2024, and will remain at this level in 2025.

According to the central bank, the government anticipates a modest rise in the coming years of its main fiscal sustainability indicator.

According to Reuters, the figures are contained in a budget package for 2023 sent to Congress, which set a fiscal primary deficit target of 65.9 billion reais ($14.02 billion) for central government accounts next year.

The central government's finances include the results of the Treasury, social security, and the central bank. This year, Brazil's Economy Ministry forecasted a primary deficit of 66.6 billion people.

According to reports, figures have been negative since 2014, with the fiscal downturn dragging gross debt far beyond the average for emerging nations, which stands at about half of GDP.

In the budget proposal, the government plans to report a deficit of 27.9 billion reais in 2024. The balance will move into the positive field, with 33.7 billion reais.

After a record deficit on the back of the COVID-19 blow in 2020, Economy Minister Paulo Guedes has revealed that improved fiscal statistics are a demonstration of the country's commitment to fiscal responsibility.

Many analysts believe that this year's presidential election will allow candidates, including President Jair Bolsonaro, who is currently seeking a second term, to bet on more populist rhetoric, ignoring fiscal discipline.

($1 = 4.7013 reais)

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