Brazil’s Congress approves new fiscal target aimed at restoring budget credibility

Brazil’s lower house approved a revised fiscal target presented by the government, setting a primary budget deficit goal of 0.5% of GDP for 2026. The move is part of a broader effort to restore investor confidence as policymakers confront slowing growth and pressure on public finances. Market analysts say the approval helps stabilize near-term debt expectations but warn that achieving the target will require disciplined spending controls and stronger revenue collection.