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[BUSINESS] · Brazil · 73 sources

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Brazil economic data shows rising household interest rates and US$ 5.1 billion current account deficit

Brazil's economic indicators for August show a complex landscape of rising debt and interest rates alongside trade surpluses. The federal public debt remained stable at R$ 9.29 trillion, with an increase in the participation of Selic-linked bonds to 52.74%. The average term of the debt also saw a slight increase to 4.10 years.

In the external sector, Brazil recorded a current account deficit of US$ 5.1 billion, driven by increased spending on services and profit remittances. This deficit represents 2.47% of the national GDP. Despite this, the trade balance maintained a surplus of US$ 6.6 billion, supported by strong exports.

Domestic credit conditions remain challenging for households. The average interest rate for free credit for individuals reached 61.7% per year, a significant increase compared to previous months. This pressure is largely attributed to high rates on revolving and installment credit cards. In contrast, corporate interest rates for free credit saw a decrease, settling at 24.2% per year.

Entities

Banco Central do Brasil · Brasil · Brazil · Bruno Reis · Central Bank of Brazil · Embratur · Ministério do Desenvolvimento, Indústria, Comércio e Serviços · Tesouro Nacional

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