Business · Economy · 1 hr ago

Economist says 2027 could change Brazil’s public debt trajectory

Economist says 2027 could change Brazil’s public debt trajectory

Economist Roberto Luis Troster sees 2027 as a chance to change Brazil’s debt path if the country adopts fiscal and structural measures.

He says those measures should curb debt growth, improve public spending and make the economy more competitive.

Rising government borrowing and high interest costs are limiting credit for businesses and households, he says, as the government competes for funds in the market.

Troster says about 9 million companies and 83 million people are listed as debtors.

He also says 5.36% of bank credit is overdue, counting payments late by 15 to 90 days and debts more than 90 days overdue.

Small and medium-sized businesses face higher borrowing costs because they have fewer financing options than large companies, which can more easily use capital markets.

Troster says restoring confidence and making credit easier to access could create more room for private investment.

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Roberto Luis TrosterEconomist and Cefeb/Fipe coordinator
2027 is an opportunity for a change in the trajectory of public debt
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