IIF Authors

Status: Will be live at 02/15/2022 07:30

Economic Views: Brazil’s Tax Cuts and Fiscal Risk

  • We have been more constructive than consensus on Brazil, …
  • despite the relaxation of the spending cap agreed last year, …
  • spending in 2022 will still be lower than before covid.
  • However, tax cuts under discussion complicate the picture, …
  • as they have the potential to compromise debt stabilization.
  • We will turn less constructive if large tax cuts are approved.