Brazil’s Public Sector Debt Update
BRASILIA (Reuters) – Brazil’s public sector gross debt rose slightly to 76.1% of gross domestic product (GDP) in May from 76.0% in April, according to central bank data released on Monday.
The increase was mainly driven by interest payments. In May, the primary budget deficit was narrower than expected, coming in at 33.74 billion reais compared to the forecasted 42.7 billion reais shortfall.
Latin America’s largest economy paid 92.145 billion reais ($16.82 billion) in nominal interest in May, a 23.9% increase from the same month last year. This rise reflects both the increase in the country’s benchmark interest rate and the growing stock of public debt.
Earlier this month, the central bank raised rates by another 25 basis points to 15%, continuing a tightening cycle totaling 450 basis points since September to combat inflation.
Over the last 12 months, the public sector has posted a primary surplus of 0.2% of GDP, while interest payments resulted in a deficit of 7.77% of GDP, culminating in a nominal budget deficit of 7.58% of GDP.
($1 = 5.4777 reais)
Comments (3)
Ezekiel Ejiogu
22:56 - 30/06/2025
Good
Ezekiel Ejiogu
22:56 - 30/06/2025
Good
Fatima Hamisu
22:21 - 30/06/2025
Good