Reported 3 days ago
Brazilian assets are significantly underperforming in 2024, with the real depreciating nearly 22% against the dollar, the steepest drop among major currencies. Investor skepticism about President Lula's commitment to address the growing budget deficit, which has ballooned to 10% of GDP, has intensified following inadequate fiscal measures and unsuccessful central bank interventions. As credit spreads widen and local bond yields soar, the outlook for Brazil remains bleak, with analysts warning of further depreciation of the currency and a challenging economic environment ahead.
Source: YAHOO