INSTANT VIEW-Brazil nominal budget deficit widens
Reuters, Thursday, September 10, 1998 at 10:36
SAO PAULO, Sept 10 (Reuters) - Brazil's nominal public
sector deficit widened to 7.27 percent of gross domestic
product in the period between January and June, the Central
Bank said Thursday.
Brazil's net public sector debt rose to 38.1 percent of GDP
as of June, the Central Bank said.
Following are comments from economists on Brazil's deficit.
MARCELO ALLAIN, CHIEF ECONOMIST AT BANCO BMC
"The nominal public sector deficit is higher than I
imagined and it represents the heavier weight of interest on
public debt."
"The government already adopted measures to reduce the
deficit, but the bill on interest is still very high and ends
up interfering in the deficit, and that's worrisome."
CAMILA FARIA LIMA, ECONOMIST AT BANCO SANTANDER
"The result is certainly worse than I expected, which was a
result closer to the 6.52 percent of GDP registered the month
before."
"There was a fairly strong deterioration in the primary
deficit that changed expectations of a nominal deficit, which
were 6.5 to 7 percent of GDP in the next few months. The
expectation now is that the government will take measures to
reduce that deficit. I think we could see more measures after
October 4 elections."
ELISA PESSOA, CHIEF ECONOMIST AT BANCO FONTE CINDAM
"The numbers are pretty bad and I think foreign investors
look closely at that figure, which could end up having a
negative effect on capital flows."
"I think that if the announced 4 billion-real budget cut is
really carried out and interest rates stay at the same level
for a short period, the deficit could be turned around."
"Another thing that needs to be evaluated is when the
government is going to get the revenue from Telebras to offset
the deficit."
Copyright 1998, Reuters News Service |
