Photo: Marcelo Camargo / Agência Brasil
If Jair Bolsonaro bury the reforms to be re-elected, the economy will suffer more.
Samar Maziad, vice president of the risk rating agency Moody’s, said he expects “some progress” on the reform agenda in Brazil later this year or early 2021.
“The important thing is that they move forward,” she said, adding that the reformist agenda is a way to face the effects of the Covid-19 pandemic, such as the rise in public debt.
“Maintaining the rating incorporates this increase (in spending), but it also foresees the resumption of fiscal adjustment in 2021. If support for reforms declines, there will be a negative impact on our scenario.”