Brazil Will Have the 12th Largest Debt in the World in 2022, According to the IMF

10/11/2017 - 10h59

In 2022, Brazil will have the 12th largest debt in the world, representing 96.9% of the Brazilian GDP, according to a forecast by the IMF (International Monetary Fund) released on Tuesday (10). The estimated total value is R$ 8.8 billion (US$ 2.5 billion)

Last year, Brazil's debt (in relation to GDP) was the 40th largest in the world (78.3%). In April, the IMF forecasts that the country would have the 19th largest global debt in 2022.

The worsening of Brazil's situation is a reflection of the deterioration of public accounts, with revenues (falling due to the recession) not keeping pace with the growth of expenses.

The government of Michel Temer forecasts that this year there will be a primary deficit of R$ 159 billion (US$ 49 billion) - the fourth consecutive year of a large deficit in public accounts.

By the projections of the IMF for 2022, ahead of Brazil will be rich countries like Japan - at the top of the list, with a gross debt of 233.9% of GDP - and the United States (109.6% of GDP), but also Lebanon, Eritrea and Cape Verde.

The projection for the major emerging economies is well below Brazil, with a forecast for 2022 of a Chinese debt equivalent to 62.2% of the country's GDP and, in India's case, of 59.6% of the GDP.

In 2017, debt already represents 83.4% of Brazilian income, according to the IMF calculations. The figure is different from the Brazilian Central Bank calculations, showing Brazilian gross debt at 76.2% of GDP.

Translated by MARINA DELLA VALLE

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	Mike Theiler/Reuters
	International Monetary Fund Managing Director Christine Lagarde speaks during the 2017 World Bank Group Spring Meetings in Washington