Brazil’s nominal budget balance improved significantly, with the actual figure at -91.52 billion BRL compared to the previous -175.58 billion BRL. This marks an increase of 84.06 billion BRL, indicating a substantial reduction in the budget deficit.
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The actual budget balance was better than the analyst estimate of -95 billion BRL, suggesting a more favorable fiscal position than anticipated. This positive surprise is likely to boost investor sentiment, particularly benefiting sectors sensitive to government spending and fiscal policy, such as infrastructure and public services. The impact on the stock market may be more sentiment-driven in the short term, as investors adjust their expectations regarding Brazil’s fiscal health.