Brazil revises 2026 state-owned enterprise primary deficit target to R$ 95.1 million
The Brazilian government has lowered its primary deficit forecast for state-owned enterprises for 2026, incorporating a R$ 10 billion exclusion related to the Correios restructuring plan. This adjustment reflects ongoing fiscal management efforts to align state-owned entity performance with broader budgetary targets.
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Brazil Monetary Policy: Fiscal Concerns Intensify Amidst Rate Futures Decline
Brazilian interest rate futures are declining due to easing global risk premiums and softening oil prices, despite persistent domestic fiscal concerns. The Central Bank maintains a cautious communication stance, while the Ministry of Planning has revised its 2026 Selic rate projection upwards. Market participants and former officials are increasingly warning of a potential fiscal crisis and recession by 2027 if significant spending cuts are not implemented.