Brazil's economy grew in Q3 2024, but fiscal concerns and rising inflation are causing market anxiety.

Brazil's economy showed solid growth in Q3 2024, with a 0.9% increase from the previous quarter, but concerns over fiscal policy, rising inflation, and a widening current account deficit have caused market anxiety. President Lula's fiscal plan, combining spending cuts and tax reforms, alarmed investors, causing the Brazilian real to drop to record lows. Economic forecasts now predict a higher benchmark interest rate of 12.63% by December 2025 and increased inflation, posing challenges to businesses and consumers.

December 02, 2024
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