Brazil: Current account deficit widens in January
January 24, 2017
Brazil’s current account balance deteriorated in January, registering a shortfall of USD 5.1 billion compared to the USD 4.8 billion deficit in the same month of 2016. January’s deficit, however, came in under both analysts’ expectations of a USD 5.3 billion shortfall and December’s result.
The trade surplus fell to USD 2.7 billion in January from USD 4.4 billion in December (January 2016: USD 0.9 billion). Exports growth surged, coming in at 32.6% over the same month last year. Imports also picked up pace, expanding 18.1%. Meanwhile, foreign direct investment came in at USD 11.5 billion in January, down from December’s USD 15.4 billion.
In January, the 12-month accumulative current account deficit widened slightly to USD 23.8 billion from USD 23.5 billion in December. The result marked a deficit of approximately 1.3% of GDP.
Author: Christopher Thomas, Economist