Worrying signs of a global crisis
A predominant characteristic of the vast majority of countries is to systematically increase their budget deficits.
Some countries hide these deficits using “creative accounting”. Others leave them blatantly in their budgets. So what?
With deficits (hidden or not) soaring (typically in the order of an annual GDP for many countries, including Brazil), the practical result of this strategy is equivalent to the bankruptcy of the countries.
Of course, none of them will admit this situation. But in people’s real lives, the simplest and most obvious consequence is the significant and permanent loss of people’s purchasing power.Â
In energy, it’s no different. It’s a capital-intensive sector. Properly remunerating investments will necessarily point to a significant real increase in tariffs and prices. In this scenario, there are challenges and opportunities. Discovering them and making them happen is the big business of the medium and long-term future.