Brazil: Current account deficit widens to nine-month high in October
November 22, 2012
In October, the current account balance incurred a deficit of USD 5.4 billion, which was larger than both the USD 3.2 billion shortfall registered in the same month last year as well as market expectations of a USD 4.7 billion deficit. In fact, the reading represents the largest monthly deficit observed since January this year. The print was influenced by a deterioration in the trade surplus, which fell to USD 1.7 billion (October 2011: USD 2.4 billion). Moreover, the services and income account deteriorated to a shortfall of USD 7.4 billion, down from the USD 5.8 billion deficit recorded in the same month last year. As a result, the moving 12-month current account deficit widened from USD 49.9 billion in September to USD 52.2 billion in October (approximately 2.3% of GDP).