Brazil’s gross debt falls, approaches pre-pandemic levels

gross debt falls pre-pandemic levels
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According to a Central Bank report issued today, Brazil’s gross debt fell to 78.5 percent of the GDP in March, the smallest percentage recorded since April 2020. The rate is 0.7 percentage points below the Central Bank measurement for February. Current debt stands at BRL 7 trillion (USD 1.39 trillion).

The so-called General Government Gross Debt tabulates the liabilities of federal, state, and municipal governments, excluding those of state-owned companies and the Central Bank itself. Its relationship to the country’s GDP is used by rating agencies to quantify solvency and risk of default.

The Central Bank says the decrease is largely down to increased GDP and currency fluctuations. Brazil’s lowest debt-to-GDP ratio on record was 51.5 percent, achieved in December 2013.