Analysis: Brazilian Debt Rise Concerns Investors, Requires Firm Action

The GDP indicator's surge in 2020 is explained by the heavy spending made by Jair Bolsonaro's government to prevent an economic collapse.

RIO DE JANEIRO, BRAZIL - Metaphors with home economics are often used by analysts to explain to lay people the risks of a country becoming over-indebted. While they are not always adequate and can oversimplify public accounting issues, some are applicable. Take, for instance, the current state of the Brazilian economy.

It could be said that the country entered the crisis triggered by the pandemic as a consumer who has reached his overdraft threshold and then gets a large unexpected bill. He will get into more debt in the short term and will have to readjust his spending even more . . .

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