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Photo: Marcello Casal Jr./Agência Brasil
Goldman Sachs chief economist for Latin America, Alberto Ramos, told Estadão that Brazilian growth cannot be sustained:
“First, we are talking about an initial increase after bottoming out. On the other hand, we had a fiscal springboard that raised the increase. There comes a time when that energy is depleted and the numbers begin to be more moderate. What we know about the trajectory of the Brazilian economy in recent years is that it is one of low growth, low investment and low productivity. This reality does not seem to me to have changed. There will come a point where it will converge to the reality of the country’s growth, which is relatively low. From a fiscal point of view, we do not do what we want, but what we can ”.
“The risks of a downgrade of Brazil’s rating are greater because the traces of public debt have worsened significantly. And, if the reforms do not advance, doubts begin to appear about the fiscal solvency of the medium and long term. This concern about fiscal solvency undermines growth because it raises long-term interest rates and confidence indicators deteriorate. “
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