Key facts
- Brazil's gross debt reached 81.1% of GDP in May, exceeding forecasts.
- The IMF-measured gross debt climbed to 94.3% of GDP in May.
- Brazil's 12-month interest bill reached 8.48% of GDP, the highest since February 2016.
- The public sector recorded a primary deficit of 56.131 billion reais in May.
- The 12-month nominal deficit through May stood at 9.62% of GDP.
Brazil's gross debt increased more than anticipated in May, reaching 81.1% of GDP, up from 80.2% in April and surpassing the 80.7% forecast. By the IMF's metric, which includes all Treasury securities, gross debt climbed to 94.3% of GDP from 92.9% the previous month. This elevated debt level, above the IMF's projected average for emerging economies, contributes to elevated risk premiums. Nominal interest payments in May totaled 107.547 billion reais, pushing the 12-month interest bill to 8.48% of GDP, its highest point since February 2016. The public sector recorded a primary deficit of 56.131 billion reais for May, wider than the 53.5 billion reais expected, resulting in a 12-month shortfall of 1.14% of GDP. Combined with the interest burden, Brazil's public sector posted a nominal deficit of 9.62% of GDP in the 12 months through May.