Brazil’s public deficit fell by 73% y/y in May

Brazil’s general government deficit stood at BRL 37.4bn in May 2021, in nominal terms, compared to BRL 140.4bn one year earlier. Notably, the central government’s revenue grew by 92.8% y/y in May, reflecting the increase in economic activity and inflation.

Federal expenditures, on the other hand, declined by 9.7% y/y. In spite of the public deficit recorded in the month, the surging economic activity had a positive impact on Brazil’s public debt-to-GDP ratio, as it declined to 84.5% of GDP in May, from 85.6% of GDP in April.

Further data and analysis on Brazil’s economy are available on the CEIC Brazil Economy in a Snapshot – Q2 2021 report.