President Rousseff takes measures to fight recession Brazil
By Frans van Hees | www.AboutBrasil.com | Week 38, September 2015
Rio de Janeiro — In
Brazil, the governmentof
president Dilma Rousseffwill significantly cut back on the budget. For 2016 Mrs Rousseff wants to ensure that a
budget surplusis achieved which is equivalent to 0.7% of gross domestic product (GDP). This was announced Monday by the Minister of Planning, Nelson Barbosa.
A troubled President Rousseff fights recession
Brazil is currently in a recession. In the second quarter the economy shrank by nearly 2% over the three months before.
Standard & Poor's also lowered the rating of the South American country last week to the official junk status of BB +, which made Brazil lose the important investment grade status.
Therefore Brazil becomes less attractive to invest in the already troubled country.
The on Monday announced cuts are worth nearly US$ 17 billion and focus on issues including postponing a pay rise for civil servants worth US$ 1.8 billion.