Brazil reduced its fiscal deficit to 7.56 % of GDP in May

In May, Brazil’s fiscal deficit narrowed to 7.56 % of accumulated Gross Domestic Product over the last 12 months, according to the Central Bank’s report released Monday.

“In May alone, the consolidated nominal public sector deficit of Latin America’s largest economy, which includes primary income and debt interest, was 125.885 billion reais (23.312 billion dollars or 19.669 billion euros),” according to the Central Bank of Brazil.

The figure reported by the financial institution represents a negative balance for the fifth month of the year. More than double that recorded in April, “breaking a streak of three consecutive declines in the nominal deficit since February.”

According to the Central Bank, the primary fiscal deficit, which serves as a benchmark for the country and does not include debt interest payments, showed a “deficit of 33.74 billion reais ($6.248 billion) in May, compared to a deficit of 63.895 billion reais ($11.832 billion) in the same month of 2024.”

The report also reflected the primary deficit of Brazil’s public accounts for the same 12-month period, with a surplus of 24.1 billion reais (approximately $4.462 billion), equivalent to 0.20 % of GDP.

According to the Central Bank, Brazilian President Luiz Inácio Lula da Silva’s goal is to close 2025 with no deficit in his public accounts.

M.Pino

Source: swissinfo

(Reference image source: ORLANDO SANT’ANNA on Unsplash)

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