Brazil's Fiscal Situation Continues to Deteriorate

The July data came in much worse than estimated.

Primary Deficit (excluding debt interest) of R$ -21.3 billion (estimated R$ -6.9 billion) and nominal deficit (including debt interest) of R$ -101.5 billion (estimated R$ -79.3 billion).

Over the last 12 months, the primary deficit was -2.29% of GDP, and the nominal deficit was -10.02% of GDP.


Net Debt fell to 61.9% of GDP (it would have remained stable compared to June without the privatization adjustments of -0.3 p.p). Gross Debt rose to 78.5% of GDP, and according to the INTERNATIONAL METHODOLOGY (including free securities in the Central Bank's portfolio), it rose to 88.82% of GDP.

Even with increased revenue, the fiscal situation continues to deteriorate with no signs of improvement.