SAO PAULO, June 30, 2025 – The Brazilian economy experienced a slight increase in its net debt-to-GDP ratio in May 2025, according to the latest data released. The ratio reached 62.0%, up from 61.7% in April, underscoring ongoing fiscal challenges.
The uptrend in the debt-to-GDP ratio has been closely monitored by both domestic and international economic analysts, as it reflects the balance between the country’s fiscal policies and economic growth. The increase, although modest, indicates that while Brazil continues to navigate through post-pandemic economic recovery, balancing fiscal responsibility with economic stimuli remains complex.
This development comes as Brazilian authorities and policymakers are grappling with strategies to strengthen economic recovery while managing debt levels. The slight increase in the ratio may lead to calls for tighter fiscal policies or efforts to stimulate the economy to bolster GDP, impacting future economic forecasts and financial stability in the region. Policymakers now face the delicate task of addressing structural issues and external economic influences to prevent further rises in the debt burden relative to national income.
