Brazil’s total debt reached 78.6% of GDP in October, equivalent to R$9.9 trillion. Data released by the Central Bank on Friday (28) show that there was an increase compared to the previous month.
Total debt – which includes the federal government, the National Institute of Social Security (INSS), state and municipal governments – is one of the key economic indicators that investors note when assessing the health of a country’s public accounts.
The comparison is made in relation to GDP to show whether government debt is sustainable. The trajectory of total debt is currently one of the points of interest in the financial market.
In October, net debt, which deducts government assets, rose by 0.2 percentage points compared to the previous month and reached 65% of GDP – a balance of R$8.1 trillion.
Also according to British Columbia data, the consolidated Brazilian public sector recorded a primary surplus of R$32.4 billion in October, compared to a surplus of R$36.9 billion in the same month last year.
The amount includes the results of the central government (National Treasury, Central Bank and Social Security), state and municipal governments and state-owned enterprises (excluding Petrobras and public banks).
The positive result was driven by the central government, which recorded a surplus of R$36.2 billion. There was a deficit of R$3.6 billion in states and municipalities and R$149 million in state-owned enterprises.