[ad_1]
The rating agency Moody's Investors Service warned that pension systems are putting heavy pressure on public spending in countries such as Brazil and that the framework advocates pension reform.
In a report on fiscal vulnerability in Latin America, signed by his vice president, Samar Maziad, Moody's indicates that, in the next decade and beyond, public pension systems in America Latin will be under pressure. the population is aging and the relationship between the number of retirees and the population of working age in the labor market is increasing
"The pressures are strong in Argentina and Brazil and require political action so that the issue from rising pension costs "According to Maziad in the document,
For the rating agency, spending on Social Security will remain high or increase as the workforce reaches the end of the year. retirement age. As a result, the corresponding deficits in the pension plans are expected to remain high in the medium term.
According to the report, Argentina, Brazil, Colombia and Uruguay are facing budgetary problems and a high level of expenditure related to pensions. In addition, the high level of indebtedness of Argentina and Brazil limits the ability of these governments to bear the expense of social security systems – which calls for reforms of the social security system so to alleviate budgetary pressures and reduce fiscal rigidity.
the government's strong fiscal position and low level of debt limit the possible deterioration of the fiscal position, while in Colombia and Uruguay, fiscal space is more limited.
Source link
