Brazil: Current account gap narrows in May
June 22, 2012
In May, the current account balance incurred a deficit of USD 3.5 billion, which was smaller than the USD 5.4 billion shortfall registered in April but larger than market expectations, which had the current account deficit narrowing to USD 3.3 billion. The May print was mainly influenced by a higher trade surplus, which rose from USD 882 million in April to USD 3.0 billion in May. The services and income account has deteriorated slightly and edged down from a shortfall of USD 6.4 billion in April to a deficit of USD 6.7 billion in May. The moving 12-month current account deficit narrowed from USD 51.6 billion in April to USD 50.9 billion in May (approximately 2.1% of GDP).