Key facts
- Brazil's interest bill reached 8.99% of GDP in the 12 months through September.
- The nominal fiscal deficit was 9.51% of GDP in the same period.
- Gross debt was 82.9% of GDP as of September.
Brazil's interest payments on its debt reached 8.99% of gross domestic product in the 12 months through September, the highest level since January 2016, according to central bank data. The country faces high borrowing costs due to investor demand for a premium amid fiscal uncertainty and rising mandatory spending. The public sector recorded a primary deficit of 0.52% of GDP, contributing to a nominal fiscal deficit of 9.51% of GDP for the period. In September alone, interest expenses were 107.5 billion reais, while the primary deficit was 5.5 billion reais. Gross debt remained stable at 82.9% of GDP, but has increased by 11.3 percentage points since President Luiz Inacio Lula da Silva took office in 2023.