Brazil: Current account deficit narrows in August
September 26, 2017
Brazil’s current account balance came in at a deficit of USD 302 million in August, which was a smaller shortfall compared to August 2016’s USD 648 million deficit. However, the result was a wider gap than market expectations of a USD 190 million deficit.
The trade surplus came in at USD 5.6 billion in August, which was above August 2016’s USD 4.1 billion. Exports recorded another month of double-digit expansion, helped by a bumper year for agricultural products. In addition, higher prices for commodities helped boost the value of overseas shipments. Meanwhile, imports rose 8.0% annually in August and foreign direct investment came in at USD 5.1 billion.
The 12-month accumulative current account deficit narrowed to USD 13.5 billion in August from USD 13.8 billion in July. August’s result marked a deficit of approximately 0.7% of GDP.