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Brazil Faces R$55 Billion Deficit Amid Surging Debt

1/30/2026

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Story summary
  • Brazil ended 2025 with a primary deficit of R$55.021 billion.
  • The government posted a deficit of R$58.687 billion, and states and municipalities posted a surplus of R$9.537 billion.
  • Interest expenses surged, pushing the deficit to R$1.0626 trillion ($197 billion) and 8.34% of GDP.
  • Analysts warn that debt, now at 79.3% of GDP, will complicate fiscal management.
  • Brazil's state-owned firms posted profits of R$136.3 billion, led by Petrobras (Petróleo Brasileiro S.A.).