Brazil posted a record primary budget surplus in January, the latest evidence of a government push for fiscal restraint that is helping to pave the way for lower interest rates. Brazil posted a consolidated primary budget surplus of 26.016 billion reais ($15.3 billion) in January, the best result for the month since the central bank began tracking the data in its current form in 2001.
In the 12 months through January, the primary surplus - which excludes debt servicing costs - was equivalent to 3.3 percent of gross domestic product, up from 3.11 percent in December. Brazil also posted an overall budget surplus, which takes into account interest payments, of 6.355 billion reais. In December, the overall budget balance was a deficit of 18.64 billion reais. As a percentage of GDP, the overall deficit in the 12 months through January declined to 2.41 percent from 2.61 percent in December.