BRASILIA (Reuters) -Brazil’s public finances performed better than expected in August, with debt levels remaining stable and the primary deficit coming in below forecasts, central bank data showed on Tuesday.
The gross public sector debt of Latin America’s largest economy stood at 77.5% of gross domestic product (GDP), unchanged from the previous month, while economists polled by Reuters had expected the ratio to rise to 78.0%.
According to the central bank, the heavy interest bill for the month – typically a factor pushing debt higher – was offset by nominal GDP growth, net debt redemptions and the impact of currency appreciation.
The public sector posted a primary deficit of 17.26 billion reais ($3.24 billion) in August, narrower than the 21 billion reais shortfall projected in the Reuters poll, and below the 21.43 billion reais deficit recorded a year earlier.
As a result, the 12-month rolling primary deficit fell to 0.19% of GDP in August from 0.22% in July.
The nominal budget balance, which includes interest payments, showed a deficit of 91.52 billion reais for the month, also smaller than the 95 billion reais projected by economists in the poll.
Over 12 months, the nominal deficit reached 7.81% of GDP, down from 7.85% in the previous month.
($1 = 5.3219 reais)
(Reporting by Marcela Ayres; Editing by Gabriel Araujo)
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