FX.co ★ Brazil’s Fiscal Deficit Widens in July

In July 2025, Brazil's nominal budget deficit expanded significantly to R$175.6 billion, marking a rise from R$81.9 billion in the same month the previous year. The consolidated public sector reported a primary deficit of R$66.6 billion, a notable increase compared to R$21.3 billion in July 2024. Deficits were observed across various segments, including the Central Government at R$56.4 billion, regional governments at R$8.1 billion, and state-owned enterprises at R$2.1 billion. Over the 12 months leading up to July, the nominal deficit escalated to R$968.5 billion, representing 7.86% of GDP, up from R$894.4 billion or 7.30% of GDP in June. Within this period, the primary balance transitioned from a R$17.9 billion surplus (0.15% of GDP) to a R$27.3 billion deficit (0.22% of GDP). Additionally, the General Government Gross Debt increased to 77.6% of GDP, amounting to R$9.6 trillion, which signifies a 0.9 percentage point rise compared to June's figures.