Brasília – Public sector net debt reached R$ 1.492 trillion (US$ 716 billion) in May, according to Central Bank of Brazil figures disclosed on Friday (29). This figure corresponds to 35% of the country’s Gross Domestic Product (GDP), the lowest level in the historic series, which began in 2001. With regard to the previous month, there was a reduction of 0.7 percentage point. This result was little above the BC forecast for the month, which was 34.8% of GDP.
This reduction in public sector net debt is explained mainly by appreciation of the dollar, as the country is a creditor in dollars, with international reserves and other assets worth more than the foreign debt.
Another fiscal index promoted by the Central Bank is the gross debt of the General Government (federal, state and municipal governments), much used for comparisons with other countries. In the case of the net debt, in which assets in foreign currency are not considered, only liabilities, the ratio to GDP is greater: in May it was 56.9%, a little over the BC projection (56.7%). In the period, the gross debt reached R$ 2.425 trillion.
*Translated by Mark Ament
