Brazil public sector budget deficit widens in November

Brazil recorded in November its third worst primary public sector budget deficit so far, news agency Reuters reported.

Brazil’s central bank released a press statement on Tuesday saying such deficit reached 19.6 billion reais (US$5.1 billion) in November.

In October, the primary public sector budget deficit was 11.5 billion reais, Reuters reported.

Fitch Ratings this month cut Brazil’s sovereign credit rating to junk status (BB+) with a negative outlook. The rating agency justified the downgrade on the basis of the increase in the country’s budget deficit, a deeper-than-expected recession, and adverse political circumstances.

Earlier this month, Brazil’s National Confederation of Industry said it expected the country’s economy to have contracted 3.3 percent this year. But it estimated the rate of decline was likely to slow in 2016, to 2.6 percent.