Brazil’s gross government debt advanced to 94.3% of GDP in May, up from 92.9% in April, according to data released by the central bank on Tuesday. The uptick exceeded market expectations and was driven primarily by heavier interest payments that increased the public borrowing requirement.
The statistics follow the International Monetary Fund’s measurement approach, which includes all Treasury securities in the debt calculation. That contrasts with Brazil’s central bank standard measure, which omits securities held off-market on its own balance sheet.
Measured against international peers, the level of gross debt stands well above the IMF’s projected average of 77.2% of GDP for emerging and developing economies in 2026. The gap between Brazil’s debt ratio and the IMF projection has sustained higher risk premiums, as investors demand greater returns to fund rising government outlays while concerns about fiscal discipline persist.
May’s nominal interest payments reached 107.547 billion reais (about $20.7 billion), contributing to a 12-month interest bill that rose to 8.48% of GDP. That figure marks the highest 12-month interest burden since February 2016, a period when Brazil was experiencing a severe economic recession.
The public sector recorded a primary deficit of 56.131 billion reais for May, which was larger than the 53.5 billion reais median forecast in a poll. Over the trailing 12 months, the public sector primary shortfall reached 1.14% of GDP.
These figures highlight the fiscal pressures policymakers face as interest obligations consume a growing share of the public budget. The debt calculations and the accompanying interest and deficit metrics underscore persistent investor sensitivity to Brazil’s fiscal trajectory.
Context limitations: The data described here reflect the IMF measurement method and the values reported by Brazil’s central bank for May; no additional forecasts or projections beyond those cited are offered.