Brazil: Current account deficit narrows in November
Brazil’s current account balance came in at a deficit of USD 2.2 billion in November, narrowing from the USD 3.1 billion shortfall recorded in the same month of 2018.
The result was largely due to reduced travel expenses in the services account and a smaller primary income deficit. On the other hand, the merchandise trade surplus narrowed to USD 3.4 billion in the month (November 2018: 4.1 billion). Exports posted another sizable contraction in November amid subdued demand from key trading partners, particularly Argentina, although imports also fell sharply. Meanwhile, foreign direct investment shrank in November coming in at USD 7.0 billion (November 2018: USD 9.1 billion).
Accordingly, the 12-month trailing current account deficit narrowed to USD 51.2 billion (October: USD 52.1 billion), which is equal to approximately 2.8% of GDP.