Brazil: Current account deficit shrinks in February
March 23, 2012
In February, the current account balance incurred a deficit of USD 1.8 billion, which was smaller than the USD 7.1 billion shortfall registered in January. The result came in above market expectations, which had the current account deficit narrowing to USD 2.5 billion. The February print was mainly influenced by an improvement in the trade balance, which rebounded from a deficit of USD 1.3 billion in January, the widest trade gap in more than 13 years, to a surplus of USD 1.7 billion in February. In addition, the deficit in the services and income account shrank for the second straight month from USD 6.0 billion in January to USD 3.6 billion in February. The moving 12-month current account deficit narrowed from USD 54.1 billion in January to USD 52.4 billion in February (approximately 2.1% of GDP).