Brazil's public sector gross debt falls to 76.1% of GDP in December

BY Reuters | ECONOMIC | 01/31/25 06:40 AM EST

BRASILIA, Jan 31 (Reuters) - Brazil's public sector gross debt fell sharply to 76.1% of gross domestic product (GDP) in December from 77.7% in November, driven by the central bank's sale of foreign-exchange reserves during a month of intense volatility in the market.

Central bank data unveiled on Friday also showed the public sector recorded a primary surplus of 15.745 billion reais ($2.68 billion) for December, surpassing the 10.2 billion reais surplus forecast by economists in a Reuters poll. ($1 = 5.8747 reais) (Reporting by Marcela Ayres)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article