increasing debts

Brazil increased its GDP fourfold between 1960 and 1980, but found that her debt was far greater at the end of this period than it was at the beginning...

Brazil is a net exporter, but the increase in her debt meant whereas in 1960, 30% of her export revenues went on debt repayments, by 1980 this had risen to 78%. And Brazil has been one of the success stories. Many developing nations have found that their entire export revenues have been insufficient to repay the interest on their debts. By 1990, Brazil had reached this position. The country exported $31.4 billion worth of goods and imported $22.5 billions, but her debt repayments were so massive that they took all her gain from exports, and still left her showing a huge loss. In 1970, the total debts carried by developing nations stood at $68 billion, equivalent to 13% of those countries’ total GDP. By 1989, this debt had reached $1,262 billion, equivalent to 31% of total GDP. By 1997, the total stood at $2,100 billion.