Market now sees surplus in Brazilian state accounts in 2022

The financial market began to forecast, on average, a positive balance in the central government accounts in 2022. If confirmed, it would be the first primary surplus in eight years.

The central government’s primary result was expected to be a surplus of R$4.6 billion (US$900) this year, compared to a deficit of R$20 billion forecasted in July. It results, among other things, from an improvement in tax revenues and the payment of dividends by state-owned companies such as Petrobras.

The data is included in the Ministry of Economy’s fiscal forecast, released Wednesday (Aug.10). The document compiles market participants’ projections for public budgets. Here is the full text provided by Poder360.

Revisions to projections for a more positive outcome in 2022 had begun in January (financial market analysts improved forecasts for the budget deficit this year from R$95.5 billion to R$88.7 billion).

Expectations for net federal revenues have improved sharply, from R$1.775 trillion in the last report to R$1.817 trillion in this month’s survey.

Total federal spending is expected to be R$1.804 trillion. Previously, it was R$1.792.

Analysts expect the country’s gross domestic product to grow by 1.92% this year.

With information from Poder360