BRASILIA (Reuters) – Brazil’s public sector debt remained stable at 73.6% of its gross domestic product (GDP) in June despite a significant negative primary result for the month, showed central bank data on Friday.
Economists surveyed by Reuters had anticipated the Brazilian gross debt to rise to 74.0% of GDP.
In June, the public sector posted a primary deficit of 48.899 billion reais ($10.3 billion), exceeding the 42.75 billion reais estimated by economists in the poll.
The outcome represented a steep reversal from the 14.395 billion reais primary surplus recorded in the same month last year.
The central government was a major factor in driving this result, posting a 46.48 billion reais deficit due to declining revenues. Additionally, states and municipalities reported a deficit of 927 million reais, while state-owned companies faced a 1.492 billion reais shortfall.
Taking into account the payment of public debt interest, the overall result for the public sector showed a deficit of 89.625 billion reais in June, from 83.793 billion reais in the same month last year.
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The central bank’s gain of 20.5 billion reais from foreign exchange swap operations offered some relief to the outcome, preventing a higher debt burden.
Over the course of 12 months, the nominal deficit expanded to 662.4 billion reais, equivalent to 6.42% of GDP.
($1 = 4.7419 reais)
(Reporting by Marcela Ayres; Editing by Steven Grattan)