Brazil's gross debt close to pre-pandemic level

Brazil's gross debt fell again in October and closed at 76.8 percent of Gross Domestic Product, or BRL 7.3 trillion.

The data, released by the country´s Central Bank (BC) on Wednesday (Nov. 30), indicates that this is the lowest level since February 2020, before the beginning of the pandemic, when the debt stood at 75.3 percent of the GDP. In September, the indicator totaled 77.1 percent of the GDP.

"With the pandemic, the gross debt rose as a result of the expenses necessary for its confrontation, but it has been decreasing," said Fernando Rocha, head of the Central Bank`s Statistics Department in an interview. The general government gross debt comprises the federal government, Social Security (INSS), and municipal and state governments.

This drop in public debt over the year is explained by three combined factors, such as GDP growth, net debt redemptions, and exchange rate appreciation.

Brazil´s federal government estimates that the country's public debt will close out the year lower than pre-pandemic levels.