Brazil State Companies Post Record Deficit as Correios Losses Deepen
Brazil's federal state companies ran a record US$1.6 billion deficit through July, up 50%, as Correios losses deepened and the 2027 budget funds a new postal bailout. The post Brazil State Companies Post Record Deficit as Correios Losses Deepen appeared first on The Rio Times .
Brazil's federal and state companies reported a record deficit of R$8.28 billion (approximately US$1.61 billion) from January to July, marking the worst financial performance in the series since 2002. This figure represents a 49.8% increase compared to the same period in 2025. The main culprit behind the loss is the state postal company, Correios, which incurred a R$5.55 billion (about US$1.08 billion) deficit alone in the first half of the year, representing a 30.4% rise from the previous year.
The central bank's report includes non-financial federal companies such as Correios, Infraero, Serpro, Dataprev, and Casa da Moeda, while Petrobras, Eletrobras, and public banks are excluded. The 2027 budget bill reserves R$6 billion (around US$1.16 billion) as a capital injection for Correios. Brazil's gross public debt reached 82.5% of GDP in July, the highest level since 2021, and the seventh consecutive monthly increase.
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