Photo: Ministry of Finance in Brazil

NNA News - Brazil's government has dismissed predictions of a recession in 2027, saying the country's economy could instead experience stronger growth if interest rates decline, while reaffirming plans to pursue fiscal reforms aimed at improving public finances. This report is compiled by Brazil 247.

Finance Minister Dario Durigan said on Monday there was "no possibility" of Brazil entering a recession in 2027, arguing that such forecasts were exaggerated and influenced by the country's upcoming election cycle.

Speaking in an interview with Rádio Jornal, Durigan said Brazil could experience a new period of economic expansion if the Central Bank continues easing interest rates. He also defended the government's plans to introduce fiscal adjustment measures focused on reducing mandatory public spending while preserving room for investment. "I defend that, soon after, still before next year, the government should already present the details of the measures. I have already presented, in general terms, what should be a reduction in mandatory spending, with a little more room for us to discuss investments," Durigan said.

According to the minister, Brazil's public debt remains at a high level but is under control. He argued that borrowing costs, rather than fiscal performance alone, are the main factor influencing the country's debt dynamics. "The best way for the government to address this problem is by carrying out fiscal adjustment, correcting public accounts and seeking efficiency in public spending," he said. Durigan also addressed trade tensions with the United States, describing tariffs imposed by the administration of US President Donald Trump on Brazilian products as "a complete absurdity."

He said he intends to present Brazil's position to US Treasury Secretary Scott Bessent during a possible meeting on the sidelines of next month's G20 meetings in the United States. "I think that after the election this will be resolved one way or another," Durigan said, referring to the trade dispute. The Brazilian government has maintained that fiscal discipline, lower borrowing costs and continued investment are key to sustaining economic growth while strengthening the country's public finances.