FX.co ★ Brazil Swings to Budget Surplus in January After Deep December Deficit

Brazil’s public finances showed a sharp turnaround at the start of 2026, with the country’s budget balance moving into positive territory in January after ending 2025 with a significant deficit.

According to the latest data updated on 27 February 2026, Brazil’s budget balance improved from a deficit of -115.502 billion in December 2025 to a surplus of 40.062 billion in January 2026. The shift represents a substantial month-on-month reversal in the fiscal position.

While the underlying drivers are not detailed in the release, such a move typically reflects a combination of stronger revenue intake and/or tighter expenditure control at the beginning of the year, and will be closely watched by markets assessing Brazil’s fiscal trajectory in 2026.