Brazil: Current account deficit narrows in February
March 25, 2015
In February, the current account balance registered a deficit of USD 6.9 billion, which was an improvement from the USD 7.4 billion deficit recorded in the same month last year. The gap was below market expectations of a USD 7.7 billion deficit.
The trade balance registered a deficit of USD 2.8 billion in February, which was a deterioration over the USD 2.1 billion deficit recorded in February 2014. Brazil tallied a trade deficit for the first time in 14 years in 2014 on the back of a sharp decline in the value of key exports. The services and income balance tallied a USD 4.2 billion deficit in February, which was a smaller shortfall compared to the USD 5.4 billion posted in the same month of the previous year.
The moving 12-month current account deficit recorded USD 89.8 billion in February, which was a slight improvement over January’s USD 90.4 billion. February’s figure is equivalent to approximately 4.2% of GDP.