Brazil fiscal risk: debt heading to 100% of GDP by 2027, mandatory spending unchecked

Economists warn Brazil's public debt could reach 100% of GDP by 2027, driven by rising mandatory spending. Neither Lula nor Flávio Bolsonaro's proposals address this structural issue, posing a fiscal risk for the next administration. The market impact is a potential deterioration in Brazil's fiscal outlook, affecting bond yields and currency.

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