Brazil Current Account

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Brazil: Current account deficit improves in September

October 23, 2015

In September, the current account balance registered a deficit of USD 3.1 billion, which was a notable improvement from the USD 8.4 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 level. However, the gap was still wider than market analysts’ expectations of a USD 2.6 billion deficit.

The trade balance registered a surplus of USD 2.9 billion in September, which was above August’s 2.7 billion surplus and notably contrasted the USD 0.9 billion deficit recorded in September 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 79.3 billion in September, which was an improvement over August’s USD 84.6 billion deficit and marked the best result in more than one year. September’s figure is equivalent to approximately 4.2% of GDP.

Analysts who participated in this month’s LatinFocus Consensus Forecast panel expect a current account deficit of 3.9% of GDP in 2015. For 2016, panelists expect the current account deficit to be 3.4% of GDP.


Author: Angela Bouzanis, Senior Economist

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Brazil Current Account Chart


Brazil Current Account September 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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