Brazil’s Fiscal Deficit reaches US$ 52 billion, 3.17% of GDP

Paranaguá port in BrazilIn November, the effort to save made by the three levels of the government of Brazil (federal, state and municipal) for payment of the public debt, totaled 12.711 billion Brazilian reais (US$ 7.3 billion).

The result is lower than the 13.8 billion reais (US$ 7.9 billion) of the primary consolidated surplus of the previous month, according to the Fiscal Policy Report, disclosed today (30) by the Central Bank.

The Federal government saved 10.712 billion reais (US$ 6.2 billion), whereas cities and states contributed with 898 million reais (US$ 516 million) and state-owned companies economized 1.101 billion (US$ 636 million) last month.

Despite the efforts, the result was a 2.4 billion real (US$ 1.4 billion) deficit, as interest payments totaled 15.125 billion reais (US$ 8.7 billion) in the month.

In the accumulated result for the year, the primary surplus totals 64.242 billion reais (US$ 36.9 billion), or 2.25% of Gross Domestic Product (GDP). But the total referring to debt interest is much higher, reaching 154.922 billion reais (US$ 88.9 billion), equivalent to 5.42% of GDP.

With this total, the fiscal deficit from January to November reached 90.680 billion reais (US$ 52 billion, equivalent to 3.17% of GDP).

The GDP of Brazil is estimated at 2.856 trillion Brazilian reais (US$ 1.6 trillion) in the accumulated result for the year. As the public sector net debt reached 1.329 trillion reais in November (US$ 763 billion), the treasury is indebted by 43% of all the country produced this year.

Exchange Surplus

The surplus between the Brazilian inflow and outflow of dollars, up to the 24 of December, Christmas eve, was US$ 2.152 billion positive, according to the exchange bulletin disclosed by the Central Bank of Brazil (BC).

As the bulletin is published one week later, always on Wednesday, the December exchange flow, with the respective closing for the year, should only be published on January 13.

The partial result for December was guaranteed mainly due to the financial flow (investment in bonds, stock exchanges, transfer abroad of profits and dividends, as well as foreign direct investment). The BC totaled an inflow of US$ 33.120 billion, against an outflow of US$ 29.758 billion, resulting in a surplus of US$ 3.362 billion.

The commercial movement generated a negative result, of US$ 1.211 billion in the month, as imports reached US$ 12.501 billion and exports totaled US$ 11.290 billion.

In the accumulated result for the year, the exchange flow is US$ 28.898 billion positive, resulting from a trade surplus of US$ 9.848 billion and a financial surplus of US$ 19.050 billion.

The BC also informed that dollar purchases on the spot market, up to November 24, expanded foreign currency reserves by US$ 2.927 billion, elevating the country’s reserves to US$ 238.735 billion. Last Monday (28), international reserves were a little higher, at US$ 238.864 billion.

ABr

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