Brazil: Current account deficit narrows in July
August 23, 2012
In July, the current account balance incurred a deficit of USD 3.8 billion, which was larger than the USD 3.6 billion shortfall registered in the same month last year and came in virtually in line with market expectations. The July print was mainly influenced by a lower trade surplus, which fell to USD 2.9 billion from USD 3.1 billion observed in the same month last year. The services and income account, on the other hand, remained unchanged and posted a deficit of USD 6.9 billion. The moving 12-month current account deficit widened from USD 51.8 billion in June to USD 52.0 billion in July (approximately 2.2% of GDP).