Brazil: Current account deficit narrows in November
December 20, 2016
Brazil’s current account balance improved in November, registering a shortfall of USD 0.9 billion compared to the USD 3.3 billion deficit in the previous month and the USD 2.9 billion deficit in November 2015. However, the figure for November 2016 was substantially larger than analysts’ expectations of a USD 0.2 billion shortfall.
The trade surplus rose to USD 4.8 billion in November from USD 2.3 billion in October, driven by a double-digit expansion in exports compared to November 2015 and a sharp yoy fall in imports. Meanwhile, foreign direct investment came in at USD 8.8 billion in November, up from October’s USD 8.4 billion.
The moving 12-month current account deficit continued to narrow and was USD 20.3 billion in November, above October’s USD 22.3 billion deficit and marking the smallest shortfall since October 2009.
Author: Oliver Reynolds, Economist