Brasília – The primary surplus (savings for paying interest on the public debt) of the Brazilian public sector reached 90.8 billion reals (US$ 53.6 billion) from January until November. The figure is equivalent to 2.74% of the Gross Domestic Product (GDP), which is the sum of all goods and services produced in the country. There was a 0.5% increase in the GDP-to-surplus ratio compared with the same period of 2009.
The figures were culled from the Fiscal Policy Report issued this Wednesday (29th) by the Brazilian Central Bank. In November, the primary surplus was 4.2 billion reals (US$ 2.4 billion). The Central Government of Brazil (which comprises the National Treasury, the Social Security and the Central Bank) has saved 1.7 billion reals (US$ 1 billion), regional governments (states and municipalities) have posted a combined surplus of 2.4 billion reals (US$ 1.4 billion) and state-owned companies have contributed 134 million reals (US$ 79 million).
Spending on interest reached 18.5 billion reals (US$ 10.9 billion) last month, a figure higher than the 16.1 billion reals (US$ 9.5 billion) spent in October. The increase was driven by rising price indices based on which part of the foreign bond debt is readjusted. So far this year, the country has paid 175.8 billion reals (US$ 103 billion) in interest, or 5.31% of the GDP, representing a 0.14% decline in the debt-to-GDP ratio.
Thus, a deficit of 14.4 billion reals (US$ 8.5 billion) was posted in November. From January until November, the deficit was 85 billion reals (US$ 50.2 billion, or 2.56% of the GDP). The figure is high considering the country’s financing needs; however, it is 0.63% lower, in terms of debt-to-GDP ratio, than in the same period of 2009.
*Translated by Gabriel Pomerancblum
