Brazil's gross public debt stood at 78.7% of GDP in January, slightly below expectations, with a primary surplus recorded in the consolidated public sector.
According to data released by the Central Bank of Brazil, the country's gross public debt ratio remained at 78.7% of GDP in January, unchanged from the previous month. This figure was slightly below market expectations which predicted a rate of 79%. At the same time, Brazil's net public debt decreased to 65% from 65.3% in December, indicating a positive trend for the country's fiscal management despite the rising debt levels.
Additionally, the consolidated public sector reported a primary surplus of R$ 103.69 billion in January, exceeding the expectations of economists who predicted a positive balance of R$ 103.2 billion. The positive balance reflects the government's ability to manage its finances effectively, with the central government alone posting a surplus of R$ 87.27 billion. This development is significant as it suggests a measure of fiscal stability even within a complex economic landscape.
However, while the overall numbers indicate a positive trend, some areas are still experiencing stress. State and municipal governments collectively recorded a surplus of R$ 21.28 billion, but state-owned enterprises reported a deficit of R$ 4.87 billion. This mixed performance highlights ongoing challenges and disparities within the public sector that policymakers will need to address as they seek to sustain economic growth and manage debt levels.
