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Brazil's primary deficit of $2.79 billion worst July in history

Staff writer |
The consolidated public sector (federal, state and local governments and state-owned companies) registered a primary deficit of R$ 10.019 billion ($2.8 billion) in July, according to data from the Brazilian Central Bank (BC).

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It was the worst result for a July in the historical series started in December 2001. In the same month of 2014, it was registered a primary deficit of R$ 4.715 billion ($1.31 billion).

In the first seven months of the year, the public sector registers a primary surplus of R$ 6.205 billion ($1.73 billion). Year-to-July, the public sector registered a primary deficit of R$ 50.996 billion ($14.25 billion), which accounts to 0.89% of Brazil’s Gross Domestic Product (GDP).

Spending with interest rates over the debt reached R$ 62.753 billion ($17.54 billion) in July and R$ 288.623 ($80.67 billion) in the first seven months of the year.

The nominal deficit, constituted by the primary result and spending with interest rates, reached R$ 72.772 billion ($20.34 billion) in July. In the first seven months of the year, the negative result reached R$ 282.418 billion ($78.94 billion).

The net debt of the public sector reached R$ 1.950 trillion ($545 billion) in July, which accounts to 34.2% of the GDP. Over June, the debt over the GDP rate declined 0.4 percentage point. The gross debt reached R$ 3.685 trillion ($1.03 trillion) or 64.6% of the GDP, an increase of 1.4 percentage point over June.


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