Brazil Unveils a $17 Billion Austerity Package as Recession Bites

MARK RIVETT-CARNAC, 9/15/2015, TIME MAGAZINE 

Once hailed as an emerging economic giant, Brazil announced a $17 billion austerity package on Monday that will freeze public-sector salaries, eliminate ministries, cut jobs and trim social programs.

“These are major corrections,” said Finance Minister Joaquim Levy, Agence France-Presse reported.

Brazilian President Dilma Rousseff gestures during a meeting with businessmen at Planalto Palace in Brasilia, on September 10, 2015. The downgrade by Standard & Poor's, one of the main rating agencies, strips Brazil of its investment-grade status and leaves Rousseff's government on life support, risking an investor rush for the exits, analysts said Thursday. AFP PHOTO/EVARISTO SA        (Photo credit should read EVARISTO SA/AFP/Getty Images)

Brazilian President Dilma Rousseff gestures during a meeting with businessmen at Planalto Palace in Brasilia, on September 10, 2015. The downgrade by Standard & Poor’s, one of the main rating agencies, strips Brazil of its investment-grade status and leaves Rousseff’s government on life support, risking an investor rush for the exits, analysts said Thursday. AFP PHOTO/EVARISTO SA (Photo credit should read EVARISTO SA/AFP/Getty Images)

The package is designed to address a severe economic downturn. Standard & Poor’s cut Brazil’s sovereign credit rating to junk last week, giving it a score lower than Russia. The South American nation announced last month that its economy is officially in recession; GDP is forecasted to shrink by 1.49% this year after it grew by only 0.1% last year.

Read More…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s