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31.08.202611:30:00UTC+00Brazil’s Budget Gap Narrows Sharply in July, Easing to BRL 97.6 Billion

Brazil’s fiscal position showed a marked improvement in July 2026, with the national budget balance narrowing to a deficit of BRL 97.6 billion, according to data updated on 31 August 2026. This follows a significantly wider shortfall of BRL 166.0 billion recorded in June 2026.

The sizeable month‑on‑month reduction in the deficit suggests some relief on the public finance front after June’s pronounced deterioration. While the budget remains in negative territory, the July figure points to a notable easing of fiscal pressures heading into the second half of the year. Investors and policymakers are likely to watch upcoming releases closely to assess whether July marks the start of a more sustained trend toward fiscal consolidation in Brazil.

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