Fact Check: Does Brazil need to borrow nearly 8% of its GDP to pay interest on its debt?
Yes
According to the Brazilian Central Bank, interest payments on Brazil’s debt reached 8.05% of its GDP in 2025, up from 7.69% in 2024. This is larger than the primary deficit, the gap between revenue raised and non-interest expenses, of 0.42% of GDP. The sum of these two represents the total deficit, the amount the Brazilian federal government had to borrow in 2025.
These large interest payments reflect both high net debt (65% of GDP) and high interest rates on Brazilian government bonds. Brazil’s inflation-adjusted interest rate, 9.23%, is well-above the 2.33% forty-country average and second highest after that of Russia (9.88%).
Brazil’s ability to raise extra tax revenue is constrained by its tax burden – its 32% tax revenue-to-GDP ratio is the highest of Latin American countries, although lower than the 34% OECD average.
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Sources:
Banco Central do Brasil Fiscal statistics
Peter G. Peterson Foundation What Is the Primary Deficit?
IMF Brazil
OECD Brazil
MoneYou Ranking Mundial de Juros Reais
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