Debt growth in Brazil is not normal, says Mansueto Almeida

Published 2025년 5월 6일

Tridge summary

BTG Pactual's chief economist, Mansueto Almeida, expressed concern over Brazil's rising public debt during President Luiz Inácio Lula da Silva's current term, predicting a potential crisis if no fiscal adjustment is made. He attributed this concern to the significant 12% growth in public spending over the past two years, surpassing the eight-year average, and anticipated the debt to reach 84% of the Gross Domestic Product by the end of Lula's term. Almeida highlighted the unsustainability of the current return on government bonds and urged for reduced public spending to allow the Central Bank to lower interest rates.

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Original content

BTG Pactual's chief economist and former National Treasury Secretary Mansueto Almeida said on Tuesday, the 6th, that the increase in public debt observed since the beginning of President Luiz Inácio Lula da Silva's current term is not normal. He stressed that, without putting a credible fiscal adjustment on the table, Brazil will have a "huge problem" ahead, since either the government will not be able to pay the debt or the country will have more inflation. During his participation in a forum held by the Brazilian Agriculture and Livestock Confederation (CNA), in partnership with Estadão and , Mansueto said that the 12% growth, in real terms, in public spending in the last two years exceeds the accumulated variation in the previous eight years. Lula's term is expected to end next year with the debt reaching 84% of the Gross Domestic Product (GDP), according to market forecasts, which corresponds to an average growth of a little over 3 percentage points each year. "Growth of 3 ...

Source: Broadcast