On Tuesday, the Moodys agency raised Brazil’s sovereign credit rating from Ba2 to Ba1, and maintained the positive outlook, due to the strong growth of the economy and recent economic and fiscal reforms in the country.
With the improvement of the risk rating, Brazil is one step away from obtaining the degree of investment, which would place the country as a safe destination for investments.
In a statement, Moodys highlighted Brazil’s commitment to fiscal objectives and the trajectory of debt-to-GDP stabilization.
He also pointed out that reforms such as tax will improve Brazil’s business environment and keep the country’s long-term economy growth strong.
The new classification, however, indicates that the country is still in speculative – speculative – and that while it is now less vulnerable it still generates uncertainty about adverse financial and economic conditions.
In a statement, the National Treasury said the improvement in credit rating reflects recognition of advances in public accounts.
Recently, Brazil’s Central Bank raised its economic growth forecast for the country to 3.2 percent in 2024, compared with 2.3 percent it has calculated so far, according to a document published Thursday.
In the document, the Central Bank highlights the “significant growth” of GDP in the first half of the year, despite the economic impacts caused by the floods in southern Brazil that, he said, were “less than expected.”
The 3.2 per cent now planned by the Central Bank equals the government’s calculations and exceeds those of the market, which expects an expansion of 3.0 per cent for this year.