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Lula Faces Rising Debt, Inflation and Tax Reform Hurdles in Brazil's Fourth Term

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Brazil's public debt has climbed by more than 10 percentage points during President Lula's current term, now exceeding 82% of GDP. This increase has pushed up the government's borrowing costs. Analysts link the problem mainly to years of growing mandatory spending. The rise in debt adds to the economic challenges Lula faces in his fourth term, including inflation and tax reform.

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