Record Rise in Brazil’s GDP Debt to 74.7% in October

In October 2023, Brazil’s public debt notably increased, soaring to 74.7% of the GDP, a rise from 74.4% in September.

The total debt reached R$ 7.9 trillion ($1.68 trillion).

This debt includes liabilities across various government levels: the federal government, social security, and local governments.

The Central Bank of Brazil released this information on December 6, 2023.

The increase in debt resulted from several factors. A rise in nominal interest rates contributed 0.6 percentage points.

Net debt issuance added another 0.1 percentage points. Changes in the nominal GDP reduced the rate by 0.5 percentage points.

The report also discusses the financial status of the consolidated public sector. This sector includes the federal government, states, municipalities, and state-owned companies.

In October, it reported a primary surplus of R$ 14.8 billion ($3.15 billion), lower than the R$ 27.1 billion ($5.77 billion) surplus in October 2022.

A primary surplus happens when revenue exceeds expenses, excluding debt interest payments.

The federal government’s surplus was R$ 19.5 billion ($4.15 billion).

Regional governments had a deficit of R$ 3.9 billion ($829.79 million), and state-owned companies a deficit of R$ 805 million ($171.28 million).

Over the past 12 months, the consolidated public sector recorded a deficit of R$ 114.2 billion ($24.30 billion), equal to 1.08% of the GDP.

This deficit is slightly more than the cumulative deficit until September, by 0.11 percentage points. This data highlights the dynamic and complex economic situation in Brazil.

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