Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen 
Asian Technology and Chipmaking Stocks Slide as AI Spending Concerns Shake Markets 
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
China’s November Economic Data Signals Slowing Industrial Output and Weak Consumer Demand 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
China’s Small Bank Consolidation Struggles as Profits Fall and Risks Persist 
Russia Stocks End Flat as Energy and Retail Shares Show Mixed Performance 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
South Korea Extends Bond Market Stabilization Measures Amid Rising Financial Risks 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Despite Brazil’s strong economic performance, Fitch Ratings cautioned on Thursday that it has not translated into improved public finances. The agency anticipates challenges in 2025 and forecasts a steeper rise in the country's public debt.
Fiscal Stance and Growth Concerns
Fitch highlighted that Brazil’s recent economic growth may be partially driven by the government's fiscal policies. The ratings agency warned that if fiscal health is weak during periods of economic strength, it could further deteriorate in the event of an unexpected slowdown. This dynamic is a "macroeconomic vulnerability constraining Brazil’s 'BB'/Stable sovereign rating," Fitch stated.
Lula’s Meetings and Fiscal Forecast
While all three major credit rating agencies have either upgraded Brazil’s rating or improved its outlook since President Luiz Inacio Lula da Silva took office, the country remains two notches away from regaining its investment-grade status. President Lula recently met with representatives from Standard & Poor’s and Moody’s in New York to present Brazil’s financial outlook firsthand.
In the Thursday report, Fitch described some government measures to raise revenue as "improvisational," signaling a commitment to fiscal targets without structural reforms. The agency forecasts the government will achieve its fiscal target of a primary deficit at zero this year, but revised its 2024 primary deficit projection to 1% of GDP, up from 0.7%.
Rising Debt and Credit Constraints
Brazil’s gross debt-to-GDP ratio is expected to rise to 77.8% this year, from 74.4% in 2022, and is projected to reach 83.9% by 2026. Fitch notes that this increase is faster than previously forecasted, further widening the gap to the 'BB' category median of 55%. While Brazil’s economy remains resilient, its fiscal challenges and rising debt continue to hinder the path to a stronger credit rating.
