Brazil: Brazil's current account gap narrows
October 25, 2011
In September, the current account balance incurred a deficit of USD 2.2 billion, which was less than half the USD 4.9 billion deficit recorded in August. The trade balance remained in surplus in September, totalling USD 3.1 billion, while the deficit in the services and income account narrowed to USD 5.5 billion. The moving 12-month current account deficit stood at USD 48.0 billion in September (approximately 2.1% of GDP), which was smaller than the USD 49.7 billion gap observed in August. The persistent current account deficit reflects a gap between saving and investment in the economy, which has been financed by a considerable amount of capital inflows, spurred on by high interest rates and a solid performance of the Brazilian economy.