Brazil Current Account

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Brazil: Current account deficit improves in November

December 21, 2015

In November, the current account balance registered a deficit of USD 2.9 billion, which was a notable improvement from the USD 9.1 billion deficit recorded in the same month of the previous year. The slimmer current account deficit has been a bright spot in recent economic data for Brazil as the country grapples with recession and high inflation levels. In addition, the gap was narrower than market analysts’ expectations of a USD 4.2 billion deficit.

The trade balance registered a surplus of USD 1.2 billion in November, which was below October’s 2.0 billion surplus but notably contrasted the USD 2.4 billion deficit recorded in November 2014. Brazil tallied a trade deficit in 2014 for the first time in 14 years on the back of a sharp decline in the value of key exports.

The moving 12-month current account deficit recorded USD 68.0 billion in November, which was an improvement over October’s USD 74.2 billion deficit and marked the best result since March 2013. November’s figure is equivalent to approximately 3.7% of GDP.

Analysts who participated in this month’s LatinFocus Consensus Forecast panel expect a current account deficit of 3.8% of GDP in 2015. For 2016, panelists expect the current account deficit to be 2.9% of GDP.


Author: Angela Bouzanis, Senior Economist

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Brazil Current Account Chart


Brazil Current Account November 2015

Note: Monthly and 12-month current account balance in USD billion.
Source: Central Bank of Brazil (BCB) and FocusEconomics calculations.


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