Brazil: Current account deficit narrows in February
Brazil’s current account recorded a USD 2.4 billion deficit in February, improving from the USD 4.0 billion shortfall logged in February last year, and from the USD 8.1 billion deficit clocked in January.
February’s result largely reflected the surplus in trade goods, a swing from last year’s deficit. However, the services account shortfall widened from a year ago, as did the primary income account deficit. Meanwhile, net foreign investment was positive in the month, totaling USD 11.8 billion in inflows (February 2021: USD +8.8 billion) and marking the highest value since January 2017.
Accordingly, the 12-month sum of the current balance tightened to a USD 26.1 billion deficit from the USD 27.7 billion shortfall recorded in January, which was equivalent to approximately 1.5% of GDP (January: approximately 1.7% of GDP).