Brazil: Current account deficit narrows in March
April 23, 2015
In March, the current account balance registered a deficit of USD 5.7 billion, which was an improvement from the USD 6.6 billion deficit recorded in the same month last year. The gap was above market expectations of a USD 4.9 billion deficit. In addition, the Central Bank of Brazil introduced a new methodology for calculating balance of payments data with March’s release.
The trade balance registered a surplus of USD 500 million in March, which marked the first surplus in three months and was above the USD 100 million surplus recorded in March 2014. 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 6.1 billion deficit in March.
The moving 12-month current account deficit recorded USD 101.6 billion in March, which was a slight improvement over February’s USD 102.5 billion. March’s figure is equivalent to approximately 4.5% of GDP.