For The First Time, Brazil Reaches Monumental Debt of R$ 9 Trillion

Written by Alisson Ficher

Published on 29/11/2024 at 16:17

Updated on 29/11/2024 at 16:26

Dívida bruta do Brasil ultrapassa R$ 9 trilhões em outubro de 2024. Alta histórica impacta o PIB e preocupa especialistas.

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Brazil Hits For The First Time In History A Gross Debt Of R$ 9 Trillion, Representing 78.64% Of GDP. The Rise, Driven By High Interest Rates And Deficits, Raises Alarm Bells For The Economy. The Lula Government Faces Challenges To Contain The Growth Of This Monumental Indebtedness.

Brazil has just crossed an unprecedented and worrying mark. For The First Time In History, The Country’s Gross Debt Exceeded The Impressive Figure Of R$ 9 Trillion.

This milestone, reached in October 2024, may seem a distant number, but the consequences of this escalation can directly affect the pockets of Brazilians and the national economy.

According to data released by the Central Bank this Friday (November 29, 2024), the General Government Gross Debt (GGGD) reached R$ 9.032 trillion, representing an increase of 1.16% compared to September.

ARTICLE CONTINUES BELOW

What Is The GGGD And Why It Matters?

The GGGD Includes The Federal Government’s Debts, The INSS (National Institute Of Social Security), And Also Those Of States And Municipalities.

According To The Central Bank, The Total Debt Increased By R$ 952.6 Billion In 2024 Alone. Since The Beginning Of The Lula Government, The Increase Has Reached An Impressive R$ 1.8 Trillion.

The historical series, started in 2006, reveals the growth of the debt under different administrations.

During Lula’s First Government (2007-2010), The Debt Grew By R$ 674.9 Billion. Under Dilma Rousseff’s Administration (2011-2014), The Jump Was R$ 1.241 Trillion.

The Bolsonaro Government Also Saw Debt Soar, With An Increase Of R$ 1.952 Trillion. Now, In Lula’s Second Term, The Numbers Continue On An Ascending Trajectory.

Weight On GDP Reaches Highest Level Since 2021

One Of The Most Used Ways To Measure The Impact Of The Debt Is To Compare It To The Gross Domestic Product (GDP). In October 2024, The Gross Debt Represented 78.64% Of The GDP.

This Is The Highest Level In Three Years, Since October 2021 When It Reached 79.1%.

This Escalation Corresponds To An Increase Of 4.22 Percentage Points Just In 2024 And 6.96 Percentage Points Since The Beginning Of The Current Government.

The Growth, Although Expected By Many Economists, Raises Questions About The Country’s Fiscal Sustainability In The Medium And Long Term.

The Impact Of Interest Rates

Another Alarming Data Is The Weight Of The Nominal Interest On Public Debt.

Spending On Interest Totaled R$ 111.6 Billion Just In October 2024, A Jump Of 80.3% Compared To October 2023, When It Totaled R$ 61.9 Billion.

The Maintenance Of The Selic Rate At Elevated Levels Is One Of The Main Factors That Aggravate The Cost Of The Debt.

With The High Selic Rate, Financing Public Indebtedness Becomes Even More Burdensome.

For Experts, This Creates A Cascading Effect, Hindering Investments And Reducing The Government’s Room For Maneuver.

The Debt Trajectory Over The Years

The Debt History Reveals Exponential Growth Over The Last Few Decades. Check Out The Numbers From Each Administration:

Lula Government (2007-2010): R$ 674.9 Billion;
Dilma Government (2011-2014): R$ 1.241 Trillion;
Dilma/Temer Government (2015-2018): R$ 2.020 Trillion;
Bolsonaro Government (2019-2022): R$ 1.952 Trillion;
Lula Government (2023-2024): R$ 1.807 Trillion (So Far).

This Growth Reflects Not Only The Expansion Of Public Spending, But Also Economic Crises And Changes In Fiscal Policies.

What To Expect In The Future?

Experts Point Out That To Avoid A Fiscal Collapse, Brazil Will Need To Adopt Adjustment Measures, Such As Spending Cuts And Structural Reforms.

Without A Change In The Debt Trajectory, The Country May Face Greater Difficulties In Attracting Investments And Maintaining The Balance Of Public Accounts.

The Question That Remains For Brazilians Is: How Will This Monumental Debt Impact The Future Of The Economy And The Lives Of People?

The Lula Government Faces A Significant Challenge Ahead, Balancing Economic Growth And Fiscal Responsibility.

In Your View, What Needs To Be Done For Brazil To Reverse This Situation? Share Your Opinion In The Comments!

For The First Time, Brazil Reaches Monumental Debt of R$ 9 Trillion

Brazil Hits For The First Time In History A Gross Debt Of R$ 9 Trillion, Representing 78.64% Of GDP. The Rise, Driven By High Interest Rates And Deficits, Raises Alarm Bells For The Economy. The Lula Government Faces Challenges To Contain The Growth Of This Monumental Indebtedness.

What Is The GGGD And Why It Matters?

Weight On GDP Reaches Highest Level Since 2021

The Impact Of Interest Rates

The Debt Trajectory Over The Years

What To Expect In The Future?

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For The First Time, Brazil Reaches Monumental Debt of R$ 9 Trillion

Brazil Hits For The First Time In History A Gross Debt Of R$ 9 Trillion, Representing 78.64% Of GDP. The Rise, Driven By High Interest Rates And Deficits, Raises Alarm Bells For The Economy. The Lula Government Faces Challenges To Contain The Growth Of This Monumental Indebtedness.

What Is The GGGD And Why It Matters?

Weight On GDP Reaches Highest Level Since 2021

The Impact Of Interest Rates

The Debt Trajectory Over The Years

What To Expect In The Future?

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Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

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A view from space, an image made by NASA shows the impressive Richat Structure, a geological formation located in the Sahara Desert, also known as the “Eye of the Sahara.”

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Brazil, Norway, Indonesia, France, and Germany are the only ones in the world that have put money into the tropical forest fund created at COP30 in Belém, and the target of US$10 billion by the end of 2026 seems increasingly difficult to reach.

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