Brazil: Current account deficit improves in October
December 2, 2015
In October, the current account balance registered a deficit of USD 4.2 billion, which was a notable improvement from the USD 9.3 billion deficit recorded in the same month last 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. However, the gap was still wider than market analysts’ expectations of a USD 3.7 billion deficit.
The trade balance registered a surplus of USD 2.0 billion in October, which was below September’s 2.9 billion surplus but notably contrasted the USD 1.2 billion deficit recorded in October 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 74.2 billion in October, which was an improvement over September’s USD 79.3 billion deficit and marked the best result since June 2013. October’s figure is equivalent to approximately 4.0% of GDP.