Brazil sees worsening debt outlook despite rising surplus

The new budget outlook represents a notable deterioration from estimates published late last year. — Reuters

BRASILIA: Brazil’s government projects a sharp rise in gross debt despite an outlook for an improving primary balance, including a 0.25% of gross domestic product (GDP) surplus target for 2026 and more ambitious goals in the following years.

In its annual budget guidelines bill, which requires congressional approval, President Luiz Inacio Lula da Silva’s administration projected primary surplus targets of 0.5% of GDP in 2027, 1% in 2028 and 1.25% in 2029.