By Fabricio de Castro

SAO PAULO (Reuters) -Brazil’s fiscal balance will become a top priority from 2027 regardless of the outcome of next year’s presidential election, Goldman Sachs’ head of Latin America macroeconomic research, Alberto Ramos, told Reuters.

Even if President Luiz Inacio Lula da Silva secures a fourth non-consecutive term, fiscal policy will need to shift from the current approach, which has seen rising revenues alongside increased spending.

“A fourth Lula term cannot repeat his third term’s fiscal management,” Ramos said, warning of potential market volatility or even a financial crisis.

Brazil’s current fiscal targets include a zero primary result for 2025 and a surplus of 0.25% of gross domestic product (GDP) in 2026, with a tolerance margin of 0.25 percentage points

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