Key facts
- President Lula stated public debt is not a concern for a potential new term.
- Lula cited fiscal improvements and economic growth as reasons for his stance on debt.
- Brazil's gross debt reached 81.9% of GDP in June.
- Senator Flavio Bolsonaro pledged to respect the upcoming presidential election results.
- Flavio Bolsonaro, son of former President Jair Bolsonaro, is a leading opposition candidate.
- Jair Bolsonaro was convicted for attempting to overturn his 2022 election defeat.
Brazilian President Luiz Inacio Lula da Silva has stated that the country's public debt trajectory is not a concern for him in a potential new term, citing fiscal improvements and economic growth. Lula argued that the government's fiscal scenario has improved since he took office in 2023 and that the country is on track to achieve a primary surplus this year. He believes economic growth will help reduce public debt as a share of Gross Domestic Product (GDP), though central bank data indicates Brazil's gross debt increased by over 10 percentage points since the beginning of Lula's term, reaching 81.9% of GDP in June. The President attributed part of the debt increase to Brazil's benchmark interest rate, which currently stands at 14%. Lula also addressed allegations against his son, Fabio Luis Lula da Silva, stating that anyone proven guilty will be held accountable.
In a separate development, Brazilian senator Flavio Bolsonaro, the eldest son of former President Jair Bolsonaro, vowed to respect the outcome of the upcoming October presidential election. Jair Bolsonaro was convicted by Brazil's Supreme Court for attempting to overturn his 2022 election defeat and had previously fostered suspicions over the country's electronic voting machines. Flavio Bolsonaro indicated he would grant amnesty to those convicted for the January 2023 riot and distanced himself from U.S. tariffs imposed on Brazilian goods.