Brazil's public debt hits 81.9% of GDP as cost climbs to 12.7% annual
Brazil's federal debt stock rose to about R$9.26 trillion in June, representing 81.9 % of GDP, the highest level since 2021. The average cost of servicing the debt reached 12.7 % per year, the steepest rate recorded since 2016, driven by the Selic benchmark rate of 14.25 %.
The consolidated public sector posted a primary deficit of R$55.3 billion in June, while the nominal deficit—including interest payments—totaled R$1.31 trillion, or 9.99 % of GDP. Over the twelve months to June, interest outlays amounted to R$1.16 trillion, equal to 8.8 % of GDP. The Treasury’s debt‑service reserve rose to cover 8.33 months of maturities.
Economists warn that the debt‑to‑GDP ratio could surpass 100 % between 2032 and 2035 if fiscal pressures persist, underscoring growing concerns about fiscal sustainability and the impact of high financing costs on Brazil’s economy.
Entities: Banco Central do Brasil · Banco Central do Brasil (Central Bank of Brazil) · Brazil · Luiz Inácio Lula da Silva · Selic rate · Tesouro Nacional · Tesouro Nacional (Brazil's Treasury) · Tesouro Nacional (Brazilian Treasury)
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The Treasury's debt‑service reserve rose to cover 8.33 months of maturities. (official data)
- [○ 1 SOURCE] The nominal deficit of the public sector was R$1.31 trillion in June, equal to 9.99 % of GDP. (official data)
- [○ 1 SOURCE] The consolidated public sector posted a primary deficit of R$55.3 billion in June. (official data)
- [○ 1 SOURCE] If current trends continue, Brazil's debt‑to‑GDP ratio could exceed 100 % between 2032 and 2035. (expert projection)
- [● 3 SOURCES] Interest payments on the debt amounted to R$1.16 trillion over the twelve months to June, representing 8.8 % of GDP. (multiple sources)
- [● 4 SOURCES] Brazil's federal debt stock reached R$9.26 trillion in June, equal to 81.9 % of GDP. (multiple sources)
- [● 2 SOURCES] The average cost of Brazil's public debt rose to 12.7 % per year, the highest level since 2016. (multiple sources)
- [● 2 SOURCES] The Selic benchmark rate stood at 14.25 % per year in June. (official data)