O Globo: Experts point to ‘wrong choices’ by the Brazilian government

Pedro Saffi, University Lecturer in Finance at Cambridge Judge, spoke to major Brazilian newspaper O Globo about the downgrade of Brazil’s credit rating to “junk” status. He said: The downgrade is the culmination of wrong economic choices made in the last four years, and that the key concern now is that a short-term crisis is turning out to be in fact a structural one. Public spending seems out of control, the government lacks the political support to implement reforms and seems incapable of devising a credible strategy to take the country out of the crisis. The consequence is that it will discourage investors, increase borrowing costs for Brazilian firms, and make it even harder to recover the macroeconomic credibility of the country.” (in Portuguese)

Read the full article [oglobo.globo.com]