Brazil's primary budget surplus fell sharply in November from a year earlier, but topped economists' forecasts, data showed on Wednesday. The consolidated primary surplus slumped to 4.2 billion reais ($2.5 billion) from 12.3 billion reais a year earlier, the central bank said.
Despite the year-on-year decline, the surplus was higher than the 3.65 billion reais median forecast of 10 analysts surveyed by Reuters. The estimates ranged from a deficit of 3 billion reais to a surplus of 6.5 billion reais. Analysts closely watch the primary budget result as a gauge of the country's debt service capacity.
The primary surplus was equivalent to 2.51 percent of gross domestic product in the 12 months through November, below a government goal of 3.1 percent of GDP for the year. Brazil's nominal budget result, which includes debt payments, was equal to a deficit of 14.4 billion reais in November, nearly five times larger than the 3 billion reais deficit a year earlier.