Brazil: Current account deficit narrows in July
August 25, 2015
In July, the current account balance registered a deficit of USD 6.2 billion, which was a notable improvement from the USD 9.3 billion deficit recorded in the same month last year. In addition, the gap was narrower than market analysts’ expectations of a USD 6.6 billion deficit.
The trade balance registered a surplus of USD 2.4 billion in July, which was notably below June’s 4.5 billion surplus, but an improvement from the USD 1.6 billion surplus recorded in July 2014. Brazil tallied a trade deficit in 2014 for the first time in 14 years on the back of a sharp decline in the value of key exports.
The moving 12-month current account deficit recorded USD 89.4 billion in July, which was an improvement over June’s USD 92.5 billion deficit. July’s figure is equivalent to approximately 4.3% of GDP.