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.