Brazil Current Account February 2020


Brazil: Current account deficit widens in February

March 25, 2020

Brazil’s current account deficit totaled USD 3.9 billion in February, widening from the USD 3.3 billion shortfall recorded in the same month of 2019, but was significantly less than January’s USD 11.9 billion deficit.

February’s result reflected a greater shortfall in the services account and a wider primary income deficit. The primary income deficit rose as profits and dividends were sent abroad, causing capital flight out of the country. Meanwhile, net foreign direct investment moderated in the month, totaling USD 6.0 billion (February 2019: USD 7.7 bn). The merchandise trade surplus, however, was stable at USD 3.1 billion as a rebound in exports was offset by a stronger recovery in imports.

Accordingly, the 12-month sum of the current account balance widened to a USD 52.9 billion shortfall, which was equivalent to approximately 2.9% of GDP, from the USD 52.3 billion deficit registered in the 12 months ending in January.

The LatinFocus Consensus Forecast projects a current account deficit of 2.9% of GDP in 2020. For 2021, panelists also foresee the current account deficit at 2.9% of GDP.

Author:, Economist

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Brazil Current Account Chart

Brazil Current Account February 20 20

Note: Monthly and 12-month current account balance in USD billion.
Source: Central Bank of Brazil (BCB) and FocusEconomics calculations.

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