Resilient private consumption and favorable terms of trade should lead to stronger-than-expected economic growth for Brazil in 2022, but long-term growth prospects remain low. Continued political pressure to increase social spending and a high interest burden will contribute to consistently high fiscal deficits in 2022-2025. We affirmed our 'BB-/B' sovereign credit ratings on Brazil. Our stable outlook balances Brazil's high fiscal deficit and debt with a favorable debt composition and external position. On June 15, 2022, S&P Global Ratings affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. The outlook on the long-term ratings remains stable. We also affirmed our 'brAAA' national scale rating, and the outlook remains stable. The transfer and convertibility assessment
