FX.co ★ Brazil Nominal Deficit Narrows Less than Expected in May

In May 2025, Brazil reported a nominal budget deficit of BRL 125.9 billion, improving from BRL 138.3 billion in the same period the previous year, though surpassing market forecasts of a BRL 116 billion deficit. This represented the largest monthly deficit in nearly 12 months. Over the past year, the nominal deficit summed up to BRL 922.0 billion, accounting for 7.58% of GDP, slightly less than April’s figure of BRL 934.4 billion or 7.73% of GDP. The consolidated public sector recorded a primary deficit of BRL 33.7 billion in May, a reduction from BRL 63.9 billion in May 2024. The Central Government and state-owned enterprises incurred deficits of BRL 37.4 billion and BRL 926 million, respectively, whereas regional governments achieved a surplus of BRL 4.5 billion. Over the 12-month span, the public sector registered a primary surplus of BRL 24.1 billion, equivalent to 0.20% of GDP, a significant shift from the BRL 6.0 billion deficit or 0.05% of GDP noted in April. Gross public debt increased slightly to 76.1% of GDP, amounting to BRL 9.3 trillion, marking a 0.2 percentage point rise from the previous month.