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.