LatinNews Daily - 13 October 2020

* Analysts and investors have expressed concern with Brazil’s fiscal situation, as public debt approaches 95% of GDP and the primary public deficit is set to close the year at 12.1% of GDP. In recent interviews, a number of economists have stressed that the market has lost confidence with the government led by President Jair Bolsonaro as it fails to deliver promises of reform and remains ambiguous on its commitment to fiscal austerity. Citing the disagreements between Economy Minister Paulo Guedes and more spendthrift colleagues in government, the chief economist of Garde Asset Management, Daniel Weeks, told national daily O Estado de São Paulo that volatility in the financial markets and with the exchange rate will persist, exercising pressure on the government, while this negative outlook over Brazil’s fiscal situation remains. The index for the São Paulo stock exchange (Ibovespa) has accumulated losses of over 6.5% in 2020 so far, while the real has depreciated around 40% against the US dollar, one of the worst-performing emerging market currencies.  

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