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Brazil returns to deficit in February due to deepening recession

Published 30/03/2016, 14:45
© Reuters. File photo of a woman looking at chillies and peppers at a market in Belo Horizonte

BRASILIA (Reuters) - Brazil posted a primary budget deficit of 23.040 billion reais (4.4 billion pounds) in February, central bank data showed on Wednesday, erasing a hefty surplus from the previous month as a contracting economy curbs revenues and raises unemployment benefit payments.

The country had been expected to post a primary budget deficit of 10 billion reais, according to the median forecast of nine analysts surveyed by Reuters.

© Reuters. File photo of a woman looking at chillies and peppers at a market in Belo Horizonte

In the 12 months through February, the primary budget deficit rose to an equivalent of 2.11 percent of gross domestic product from 1.75 percent in 12 months through January.

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