Public Debt
If the PEC’s proposal does not be modified, Armor Capital estimates that the country’s gross public debt could reach 95% of GDP by 2026 from around 77% expected this year. “It is a very expressive upward debt trajectory in the coming years”, says Andrea Damico, partner and chief economist at Armor Capital.
Transition PEC and Lula’s speeches reinforce uncertainties, becoming economist’s critics target
Economists have been criticizing the Constitutional Amendment Proposal (PEC) draft submitted to the National Congress as well the recent speeches of the president-elect Luiz Inácio Lula da Silva (PT), who criticized once more the spending ceiling rule, which limits the public spending growth to inflation.
