Brazil: Current account deficit continues to narrow in August
September 25, 2012
In August, the current account balance incurred a deficit of USD 2.6 billion, which was less than the USD 4.8 billion shortfall registered in the same month last year and market expectations of a USD 2.8 billion deficit. The August print was mainly influenced by an improvement in the services and income account, which rose to a shortfall of USD 6.1 billion, up from the USD 9.0 billion deficit recorded in the same month last year. On the other hand, the trade surplus deteriorated somewhat and fell to USD 3.2 billion (August 2011: USD 3.9 billion). The moving 12-month current account deficit narrowed from USD 52.0 billion in July to USD 49.7 billion in August (approximately 2.1% of GDP).