Brazil’s debt has fallen in the last two years but is now projected to rise sharply

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By Célio Yano

In October 2020, due to the emergency measures adopted by the government to face the Covid-19 pandemic, Brazil’s public debt reached 87.6% of the Gross Domestic Product (GDP), the highest level in the Central Bank (BC) historical series.

A year later, with the economy’s recovery, the indicator had already dropped to 80.4%, and the market consensus saw a downward trend to a level of 78.3% by the end of 2030.

The debt, however, fell much faster.

Good fiscal results over the past two years have caused the debt-to-GDP . . .

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