Folha do Estado | North American agency downgrades Brazilian economy

The North American risk rating agency Moody’s announced the downgrade of the Brazilian economy’s rating to Ba2, signaling “weak and sensitive” fiscal solidity due to the country’s high debt and the difficulty in managing the debts, in addition to the current high spending. government.

The rating, which indicates a high risk for foreign investors, has been in effect since 2016. According to Moody’s, the debt burden is expected to continue to grow over the next two years before stabilizing.

“The Ba2 rating reflects fiscal strength that is still relatively weak, given Brazil’s spending rigidity, high debt burden and weak debt repayment capacity, which remains sensitive to economic or financial shocks,” the agency said in a statement.

Despite the downgrade, Brazil’s economic outlook was adjusted from “stable” to “positive”. The Minister of Finance, Fernando Haddad, responded to Moody’s criticism, emphasizing that the new perspective reflects the collaborative effort of the Three Powers to overcome differences and prioritize national interests. “Even with the momentary deterioration of the global economy, Brazil is moving forward and recovering economic, social and environmental credibility. We have a lot to do”, celebrated Haddad.

President Lula highlighted the recovery of international respect and Brazil’s economic and environmental credibility, while Haddad highlighted efforts to maintain the health of public accounts as essential for future positive advances. The National Treasury indicated that improving fiscal balance will contribute to reducing interest rates and improving credit conditions, thus expanding public and private investments in the country.

With CNN Info