Brazil: Current account gap widens in April
May 22, 2013
In April, the current account balance incurred a deficit of USD 8.3 billion, which was larger than both the USD 5.4 billion shortfall registered in the same month last year and the USD 7.3 billion deficit expected by the market.
The trade balance registered a monthly deficit of USD 1.0 billion in April, which contrasted the USD 880 million surplus registered in the same month last year. Moreover, the services and income balance tallied a USD 7.5 billion deficit in April, which represents a deterioration from the USD 6.4 billion shortfall posted in the same month last year.
The moving 12-month current account deficit widened from USD 67.0 billion in March to USD 70.0 billion in April (approximately 3.0% of GDP), which brings the ratio to levels last seen in 2002.
LatinFocus Consensus Forecast participants expect a current account deficit of 2.9% 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 2.9% of GDP.