Brazil: Current account deficit widens in July
Brazil’s current account recorded a USD 4.1 billion deficit in July, widening from the USD 1.2 billion shortfall posted in the same month last year, and deteriorating from the USD 1.3 billion surplus clocked in June 2022.
July’s result chiefly reflected a smaller surplus in trade goods compared to July last year. Additionally, the services account shortfall widened nearly 60% from the same month in 2021. Lastly, the primary income account shortfall increased marginally. Meanwhile, net foreign investment was positive in the month, totaling USD 7.7 billion in inflows (July 2021: USD +6.6 billion).
Accordingly, the 12-month sum, of the current account balance widened to a USD 36.6 billion deficit from the USD 33.6 billion shortfall recorded in June. This was equivalent to approximately 2.1% of GDP (June: approximately 1.9% of GDP).