Brazil: Current account deficit narrows considerably in January
March 6, 2018
Brazil’s current account balance came in at a deficit of USD 4.3 billion in January, a smaller gap than the USD 5.1 billion deficit recorded in January 2017.
The trade surplus came in at USD 2.8 billion in January, which was slightly above January 2017’s USD 2.7 billion surplus. Exports soared 13.8% over the same month of the previous year, while strengthening domestic demand cause imports to grow a buoyant 16.5% annually. Foreign direct investment came in at USD 6.5 billion UP/DOWN FROM X in the previous year.
The 12-month accumulative current account deficit improved in January. It narrowed to USD 9.0 billion from USD 9.8 billion in December.
Brazil Current Account Forecast
Analysts who participated in this month’s LatinFocus Consensus Forecast expect a current account deficit of 1.3% of GDP in 2018. For 2019, panelists expect the current account deficit to widen to 1.7% of GDP.