Part 4/7:
One of the core issues facing Brazil is its considerable budget deficit. This has been a longstanding concern for investors but has gained more prominence since President Luiz Inácio Lula da Silva took office. Lula, who has a reputation for a populist agenda, continues to push for extensive social programs while remaining committed to his campaign promises. This has put him at odds with market expectations for austerity measures, especially as Brazil grapples with a growing deficit.