Brazil: Current account deficit reaches a 10-month high in November
December 18, 2012
In November, the current account balance incurred a deficit of USD 6.3 billion, which was smaller than the USD 6.6 billion shortfall registered in the same month the year before but larger than market expectations of a USD 6.1 billion deficit. In fact, the reading represents the largest monthly deficit observed since January 2012.
The print was influenced by an improvement in the services and income account, which rose to a shortfall of USD 6.2 billion in November, up from the USD 7.4 billion deficit recorded in the same month the year before. On the other hand, the trade balance deteriorated and fell to a USD 187 million deficit, which contrasted a USD 571 million surplus recorded in the same month the previous year.
As a result, the moving 12-month current account deficit narrowed from USD 52.2 billion in October to USD 51.8 billion in November (approximately 2.3% of GDP).