One out of every four reals collected in Brazil was used to pay interest

The interest rate maintained by Roberto Campos Neto, head of the central bank, is one of the highest in the world

Action against rising interest rates and the head of the Central Bank, Roberto Campos Neto

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247 – A quarter of Brazil's tax revenues in 2023 will go towards paying interest on government debt, it has been revealed a report Written by journalist Assis Moreira, published in Valor magazine. This large allocation of resources highlights a challenging scenario, threatening the government's ability to invest in priority areas.

Under the presidency of Roberto Campos Neto, the Brazilian Central Bank has maintained one of the highest interest rates in the world. This decision had a direct impact on public finances, as a large portion of tax revenues was allocated to interest payments, which exacerbated the country's economic complexities.

United Nations economists expect economic growth in Brazil to slow, expecting it to decline from 3.1% in 2023 to 1.6% the following year. This decline is due to the prolonged impact of high interest rates on consumption and investment, as well as lower external demand.