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2025-07-31 19:33:08
[Brazil Fiscal Alert! June Budget Deficit Far Exceeds Expectations, Debt Data Continues to Under Pressure] ⑴ Data from the Central Bank of Brazil showed that the country recorded a primary budget deficit of 47.091 billion reais in June. ⑵ This figure was significantly higher than the 40.9 billion reais forecast in a Reuters poll. ⑶ Brazil's overall budget deficit for June reached a staggering 108.107 billion reais. ⑷ For the 12 months ending in June, Brazil's primary budget surplus was equivalent to 0.15% of GDP. ⑸ As of June, Brazil's gross public sector debt accounted for 76.6% of GDP. ⑹ Public sector net debt accounted for 62.9% of GDP, exceeding the 62.4% forecast in a Reuters poll. ⑺ These data indicate that Brazil faces severe fiscal challenges, with a higher-than-expected budget deficit and persistently high debt levels. ⑻ Despite primary budget surpluses over the past 12 months, the widening deficit in a single month may raise market concerns about Brazil's fiscal sustainability. ⑼ Investors need to pay close attention to the Brazilian government’s fiscal consolidation measures and their impact on the economy and market confidence.
