Economic news bolsters debt.
However, Tim Kearney, senior Latin America economist for Bear Stearns, in New York, points out that, despite these apparently impressive figures, the overall fiscal position in Brazil is clearly deteriorating, with the nominal fiscal deficit rising to 6.2% of GDP in July, the highest since December 1999, and 2% higher than a year ago. This alarming rise in the country's debt burden can only compound the problem of high interest rates, with the Selic rate at 19%, and the deteriorating economic fundamentals, which threaten to plunge the country into recession. Furthermore, the real's continuing decline can only add to these pressures.
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|Title Annotation:||economic conditions in Brazil|
|Article Type:||Brief Article|
|Date:||Aug 30, 2001|
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