Brazil fiscal adjustment consensus faces countercyclical policy reversal

An opinion piece in Valor Econômico argues that Brazil's fiscal policy is procyclical, with spending rising as the economy cools, contrary to the consensus need for fiscal adjustment to curb rising public debt. The piece criticizes both Bolsonaro and Lula governments for failing to accumulate primary surpluses during high-growth post-pandemic years. This reflects growing concern over Brazil's fiscal trajectory, which could pressure markets.