Brazil recorded a primary surplus in the consolidated public sector of R$ 102.1 billion in January 2024, greater than the positive balance of R$ 99.0 billion observed in the same month of 2023, the Central Bank reported this Thursday (7). However, in 12 months, the consolidated public sector had a deficit of R$ 246.0 billion, equivalent to 2.25% of GDP. The result was just 0.04 percentage points lower than the deficit recorded in 2023.

In January, the Central Government had a surplus of R$ 81.3 billion, while regional governments had a positive balance of R$ 22.5 billion. But state-owned companies had a deficit of R$ 1.7 billion.

The nominal result of the consolidated public sector, which includes the primary result and appropriate nominal interest, was in surplus at R$ 22.2 billion in January. In the twelve months, the nominal deficit reached R$ 991.9 billion (9.06% of GDP), compared to a nominal deficit of R$967.4 billion (8.90% of GDP) in December 2023.

Debt/GDP

The government's Net Debt reached 60.0% of GDP (R$6.6 trillion) in January, falling 0.8 pp of GDP in the month. This result reflected, above all, the impacts of the primary surplus (reduction of 0.9 pp), the effect of the variation in nominal GDP (reduction of 0.4 pp), the exchange rate devaluation of 2.3% (reduction of 0.3 pp ) and the appropriate nominal interest (increase of 0.7 pp).

The Gross Debt of the Federal Government, INSS and state and municipal governments reached 75.0% of GDP (R$ 8.2 trillion) in January 2024, an increase of 0.7 pp of GDP compared to the previous month.

This evolution in the month was mainly due to the effect of appropriated nominal interest (increase of 0.7 pp), net debt issuance (increase of 0.4 pp), the effect of exchange rate devaluation (increase of 0.1 pp) , and the variation in nominal GDP (reduction of 0.5 pp).

Source: https://www.infomoney.com.br/economia/brasil-tem-superavit-primario-em-janeiro-mas-deficit-em-12-meses-vai-a-225-do-pib/