Brazil’s gross debt-to-GDP ratio dropped to 75.3% in January, below expectations, boosted by net debt redemptions and GDP growth. The public sector reported a primary surplus of 104.096 billion reais, exceeding forecasts, as the government targets a zero primary deficit for the year.
In January, Brazil’s gross debt-to-GDP ratio decreased unexpectedly to 75.3% from December’s 76.1%. This figure was better than the anticipated 76.2% forecast by a Reuters poll of economists. The decline of 0.8 percentage points was attributed to net debt redemptions and nominal GDP growth effects.
Additionally, Brazil’s public sector achieved a primary surplus of 104.096 billion reais ($17.92 billion) for January, surpassing economists’ expectations of 102.135 billion reais. This resulted in a 12-month rolling deficit of 0.38% of GDP, with the central government alone showing a deficit of 0.37% of GDP.
President Luiz Inacio Lula da Silva’s administration aims for a zero primary deficit in 2023, allowing a margin of 0.25% of GDP in either direction. The recent performance of Brazil’s economy showcases a promising trend with improving fiscal stability, despite ongoing challenges.
Brazil’s gross debt-to-GDP ratio fell to 75.3% in January, outperforming market forecasts. Driven by net debt redemptions and nominal GDP growth, the public sector exhibited a primary surplus. President Lula’s administration strives for a balanced budget, reflecting positive fiscal trends amid ongoing economic scrutiny.
Original Source: www.tradingview.com
