Brazil: Current account deficit widens to record high in January
February 22, 2013
In January, the current account balance incurred a record deficit of USD 11.4 billion, which was larger than both the USD 7.1 billion shortfall registered in the same month last year and market expectations of a USD 9.7 billion deficit.
The print was mainly influenced by a deterioration in the trade balance, which registered a record monthly deficit of USD 4.0 billion in January, down from the USD 1.3 billion shortfall registered in the same month last year. In addition, the services and income balance fell to a USD 7.5 billion deficit in January, down from the USD 5.9 billion shortfall posted in the same month last year.
As a result, the moving 12-month current account deficit widened from USD 54.2 billion in December to USD 58.6 billion in January (approximately 2.6% of GDP).
LatinFocus Consensus Forecast participants expect a current account deficit of 2.7% 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 2.7% of GDP.