Brazil recorded a public deficit of 402,7 billion reais (65,5 billion euros) in the first half of the year, a figure that does not include interest expense on domestic and foreign debt, according to information released today by the Brazilian Central Bank .
In the same period last year, the country's primary deficit totaled 5,7 billion reais (930 million euros). The negative balance of the public sector includes the performance of the accounts of the central government, regional governments, municipal governments and state-owned companies.
The poor performance of public accounts in the largest country in South America was caused by the economic crisis that accompanies the covid-19 pandemic. The disease was first detected in Brazil in February, has already caused more than 90 thousand deaths and more than 2,5 million infected people.
Accumulated in 12 months, the result of Brazilian public accounts reached 458,8 billion reais (74,6 billion euros), a value that represents 6,38% of the country's Gross Domestic Product (GDP).
The data indicate that both the primary result of the public accounts from January to June, and the accumulated balance in twelve months up to June were the worst ever recorded in the Central Bank's historical series, which started in December 2001.
The nominal result of the Brazilian consolidated public sector, which adds the appropriate interest to the primary result, was a deficit of 210,2 billion reais (34,2 billion euros) in June, according to the issuing agency.
In the 12-month period, the Brazilian nominal deficit reached 818,6 billion reais (133,1 billion euros), which represents 11,38% of the country's GDP.
The Central Bank reported that Brazil's gross public debt, which comprises the Federal Government, the pension payment system for retirement and state and municipal governments, was 6,1 billion reais (one billion euros) in June, equivalent to 85,5% of the country's GDP.