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Brazil Treasury sees gross debt-to-GDP at 83.6% in 2026, rising to 88.6% by 2032

Newsquawk Staff ·

Brazil Treasury sees gross debt-to-GDP at 83.6% in 2026, rising to 88.6% by 2032.

What it means

The forecast from the Brazil Treasury indicating a rise in gross debt-to-GDP from 83.6% in 2026 to 88.6% by 2032 suggests a concerning trend for fiscal sustainability. This trajectory may lead to increased scrutiny from investors regarding Brazil's creditworthiness, impacting sovereign bond yields and the currency in the medium term. Policymakers may need to address this rising debt burden to maintain investor confidence and mitigate potential economic headwinds.

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