Brazil: Current account deficit narrows in March
July 25, 2022
Brazil’s current account recorded a USD 2.8 billion deficit in March, improving from the USD 5.2 billion shortfall logged in March last year, but deteriorating from the USD 2.4 billion deficit clocked in February 2022.
March’s result chiefly reflected a surplus in trade goods, swinging from last year’s deficit. However, the services account shortfall widened from a year ago, as did the primary income account deficit. Meanwhile, net foreign investment was positive in the month, totaling USD 7.6 billion in inflows (March 2021: USD +7.0 billion).
Accordingly, the 12-month sum of the current balance tightened to a USD 23.5 billion deficit from the USD 26.0 billion shortfall recorded in February. This was equivalent to approximately 1.4% of GDP (February: approximately 1.6% of GDP).
Author: Marta Casanovas , Economist