Brazil: Current account deficit widens in March
April 24, 2013
In March, the current account balance incurred a deficit of USD 6.9 billion, which was larger than both the USD 3.3 billion shortfall registered in the same month last year and the USD 6.3 billion deficit expected by the markets.
The trade balance registered a monthly surplus of USD 161 million in March, which was well below the USD 2.0 billion surplus registered in the same month last year. On the other hand, the services and income balance tallied a USD 7.2 billion deficit in March, down from the USD 5.6 billion shortfall posted in the same month last year.
The moving 12-month current account deficit widened from USD 63.4 billion in February to USD 67.0 billion in March (approximately 2.9% of GDP), which brings the ratio to levels last seen in 2002.
LatinFocus Consensus Forecast participants expect a current account deficit of 2.8% of GDP this year, which is down 0.1 percentage points from last month's forecast. For 2014, panellists anticipate the current account deficit to remain stable at 2.8% of GDP.