Business · Economy · 6 hrs ago
Brazilian executives urge spending control to help lower interest rates
Pedro Parente and Roberto Giannetti called for tighter control of public spending to help lower interest rates and support economic growth in Brazil.
They say the government needs to rebuild confidence in its public finances and show that the country’s debt can improve.
Brazil’s gross government debt stands at 82.9% of GDP, or 11.1 trillion reais, according to the latest figures cited from the central bank.
Parente says a fiscal adjustment worth four percentage points of GDP would mean cuts on the scale of spending on Bolsa Família and unemployment insurance.
Giannetti says spending changes must protect social support, while political resistance and a rigid budget make reform difficult.
The proposals were discussed at a business and economics debate on challenges facing Brazil’s next government, part of a series scheduled to run through the week.
Pedro Parente and Roberto Giannetti say controlling public spending and restoring fiscal credibility are essential to lowering interest rates and supporting Brazil’s economic growth.
The executives proposed measures developed by the Brasil Adiante and Grupo Parlatório initiatives to contain public debt and improve state efficiency.
They said political resistance and a rigid budget could make the measures difficult to implement.
Brazil’s gross government debt stands at 82.9% of GDP, or R$11.1 trillion, according to the latest figures cited from the Central Bank.
- Who
- Pedro Parente, former Petrobras president, and Roberto Giannetti, president of Kaduna Consultoria.
- What
- They urged spending control and stronger fiscal credibility to help lower interest rates.
- When
- The second debate in Estadão’s series, published on October 20, 2026.
- Where
- Brazil.
- Why
- They said high public spending and debt constrain investment and growth, while fiscal credibility could help reduce interest rates.
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- Gross government debt
- 82.9% of GDP
- Debt value
- R$11.1 trillion
- Proposed fiscal adjustment
- Four percentage points of GDP
- Grupo Parlatório membership
- 380 businesspeople, executives and civil society leaders
- Grupo Parlatório economic reach
- About 40% of Brazil’s GDP
1 source
What people are saying
We are living in a financial madhouse in Brazil.
This will not happen by magic; it takes time.
What is happening with Brazilian productivity is a disgrace.
The big question is political.