Brazil: Brazil posts record current account deficit in December
January 23, 2013
In December, the current account balance incurred a record deficit of USD 8.4 billion, which was larger than both the USD 6.0 billion shortfall registered in the same month the year before and market expectations of a USD 6.3 billion deficit.
The print was influenced by a deterioration in the services and income account, which fell to a shortfall of USD 10.9 billion in December, down from the USD 10.0 billion deficit recorded in the same month the year before. In addition, the trade balance fell to a USD 2.2 billion surplus in December, down from the USD 3.8 billion surplus posted in the same month the previous year.
As a result, in the full year 2012 the current account deficit widened to USD 54.2 billion (approximately 2.4% of GDP), which was larger than the 2.1% deficit registered in 2011.