Brazil: Current account deficit hits new record on trade gap
February 23, 2012
In January, the current account balance incurred a deficit of USD 7.1 billion, which was larger than the USD 6.0 billion shortfall registered in December and represented, in fact, a new record high. The result came in broadly in line with market expectations, which had current account deficit widening to USD 7.0 billion. The January print was mainly influenced by the trade balance, which swung from a surplus of USD 3.8 billion in December to a deficit of USD 1.3 billion in January, the widest trade gap in more than 13 years. On the other hand, the deficit in the services and income account shrank from USD 10.0 billion in December to USD 6.0 billion in January. The moving 12-month current account deficit widened from USD 52.6 billion in December to USD 54.1 billion in January (approximately 2.2% of GDP).