Brazil to end the year with debt equal to 94% of country's GDP

Amidst the coronavirus pandemic, Brazil has revealed that it is set to end 2020 with debt which will be equal to 94 per cent of the country’s gross domestic product. According to reports, the announcement was made by Treasury Secretary Mansueto Almeida on June 1 who added that the country needs to seriously consider fiscal reforms if that figure is to reduce.

As per reports, the Brazilian government revised its official debt forecast in May to 93.5 per cent. This figure is based on the assumption that the country’s GDP reduces by only 4.7 per cent but that figure is also likely to increase. Brazil has currently reported 526,447 positive coronavirus cases and has a death toll of 29,937.

Downplaying threat

In the midst of a growing number of cases, Brazil is planning to reopen the country drawing criticism from health experts. The South American nation is preparing to ease lockdown restrictions with President Jair Bolsonaro at the forefront in demanding the lifting of quarantine measures. The right-wing leader has time and again urged people to defy lockdown and get to business as usual, which has not gone down well even within his government.

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Brazil has seen two of its health ministers resign since the pandemic began late last year, with the latest being Nelson Teich. Nelson's predecessor, Luiz Mandetta, was sacked by Bolsonaro on April 16 following a disagreement over social isolation measures, which the president felt was unnecessary. General Eduardo Pazuello has been appointed as the interim health minister of Brazil. Bolsonaro has been downplaying the threat himself, rallying with supporters, eating at street vendors, and encouraging people to get back to work.

 Brazilian President Bolsonaro has claimed that because of his sporting past, even if he were to catch the coronavirus, he would only suffer a minor cold. The right-wing populist president of Brazil wants the football season to resume even though the five-time World Cup-winning country is a hotspot of the coronavirus pandemic.

(Image Credit AP)

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