Brazil Current Account

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Brazil: Current account deficit narrows in January

February 24, 2015

In January, the current account balance registered a deficit of USD 10.7 billion, which was an improvement from the USD 11.6 billion deficit recorded in the same month last year. The gap was below market expectations of a USD 10.9 billion deficit.

The trade balance registered a deficit of USD 3.2 billion in January, which was an improvement over the USD 4.1 billion deficit recorded in January 2014. However, January’s figure marked a 12-month low. 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 7.6 billion deficit in January, which was a smaller shortfall compared to the USD 7.7 billion posted in the same month of the previous year.

The moving 12-month current account deficit recorded USD 90.4 billion in January, which was a slight improvement over December’s USD 91.3 billion. January’s figure is equivalent to approximately 4.2% of GDP.

LatinFocus Consensus Forecast participants expect a current account deficit of 3.6% of GDP in 2015. For 2016, panelists expect the current account deficit to be 3.3% of GDP.


Author: Angela Bouzanis, Senior Economist

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Brazil Current Account Chart


Brazil Current Account January 2015

Note: Monthly and 12-month current account balance in USD billion.
Source: Central Bank of Brazil (BCB) and FocusEconomics calculations.


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