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Pension Bill Failure Will Hurt Brazil Economy

Pension Bill Failure Will Hurt Brazil EconomyPension Bill Failure Will Hurt Brazil Economy

Brazil’s President Michel Temer warned on Wednesday that the Brazilian economy could suffer if his social security overhaul bill is not approved by congress, and he urged the country’s mayors to voice support for the unpopular reform bill, Reuters reported. Temer has been scrambling for votes to win passage in the lower house next week of the measure considered vital to bringing a huge budget deficit under control. Investors fear failure to pass the bill could weaken the real currency and the stock market, while boosting interest rates and possibly fueling new credit rating downgrades for Brazil next year. Meanwhile, retail sales unexpectedly dropped in October, highlighting an uneven recovery in Latin America’s largest economy. Sales volumes excluding cars and building materials slipped 0.9% from the month before after seasonal adjustments, government statistics agency IBGE said on Wednesday, compared with the median forecast of a 0.2% increase in a Reuters poll. That was the biggest monthly decline since March, with five of the eight product categories tracked by IBGE in the red.

 

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