FX.co ★ Brazil Budget Deficit Exceeds Expectations

Brazil’s nominal budget deficit widened to BRL 115.9 billion in August 2026, up from BRL 91.5 billion in the same month a year earlier and above market expectations of a BRL 109.4 billion shortfall. The federal government reported a deficit of BRL 14.7 billion, while regional governments posted a surplus of BRL 2.7 billion and state-owned enterprises recorded a surplus of BRL 2 billion.

Gross public debt rose to 82.9% of GDP in August, matching the level last seen in October 2021. This was an increase from 82.5% in July, but below market forecasts of a rise to 83.1%. Over the 12 months to August, the nominal public sector deficit narrowed to 0.62% of GDP, from 0.67% in the previous period.