Brazil’s November Budget Deficit 9.3% of GDP

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The FINANCIAL — Brazil’s government accounts remained weak in November, with a budget deficit equal to 9.3% of gross domestic product, the central bank said on December 29, according to Nasdaq.

The result is slightly improved from October’s 9.5%-of-GDP budget gap.

Brazil’s gross debt was 65.1% of GDP, versus 66.1% of GDP in October, the central bank said.

The government has given up plans set earlier this year to achieve a primary surplus of 1.1% of GDP in 2015, as a deep recession weakened tax revenue and offset spending cuts. Instead of a surplus, the government can now end the year with a primary deficit as large as 2% of GDP, analysts say. Full-year results are to be released in late January.

The government announced on December 28 that this week it will pay in full a total of 57 billion Brazilian reais ($14.75 billion) in debt it has with Brazil’s large state-controlled banks, a move likely to increase the country’s budget hole.

 

 

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