RIO DE JANEIRO, BRAZIL – Brazil’s gross debt fell 0.2 percentage points in April and reached 78.3% of the GDP (Gross Domestic Product).
The BC (Brazilian Central Bank) released the result this Monday, May 30.
The Central Bank calculates the gross debt based on the federal government’s accounts, INSS (National Institute of Social Security), states, and municipalities.
The percentage was the lowest recorded since March 2020 (77% of GDP), the first month of the covid-19 pandemic.
The debt rose from R$7 trillion in March to R$7.1 trillion (US$1.5 trillion) in April.
According to the monetary authority, the reduction in the proportion of debt to GDP is mainly due to the effects of nominal GDP growth, which helped reduce it by 0.9 p.p. in April.
The exchange devaluation increased it by 0.2 percentage points in the month.