Brazil’s government saw record deficit, GDP down 0.6%Staff Writer | September 1, 2016
Brazil’s federal, states and local governments had a combined primary deficit of BRL 12.816 billion ($3.957 billion) in July.
LatAm The lowest result for the month
The Brazilian Central Bank said that the year-to-date deficit is BRL 35.592 billion ($10.991 billion). The comparable period of 2015 had seen a BRL 6.205 billion surplus.
Brazil’s GDP fell 0.6% in Q2 from Q1 as per seasonally adjusted numbers. In Q2 from the year-ago period, GDP shrank by 3.8%. From January through June, GDP shrank by 4.6% compared with the first half of 2015.
The quarterly national accounts report by the Brazilian Institute of Geography and Statistics (IBGE) shows GDP shrinking 4.9% in the four quarters through Q2 2016 from the prior four-quarter period. In current values, the Brazilian GDP reached BRL 1.5 trillion in Q2 2016.
The 0.6% GDP drop seen in Q2 means Brazil’s economy has shown contraction for six straight quarters. Industry prevented the GDP from falling even further, with 0.3% growth, while agriculture and services activity slid 2% and 0.8%. ■