Brazil: Current account gap widens in December
January 24, 2014
In December, the current account balance incurred a deficit of USD 8.7 billion. The print was slightly larger than the USD 8.4 billion shortfall registered in the same month the previous year, but far exceeded the USD 6.7 billion deficit the market had expected.
The trade balance registered a monthly surplus of USD 2.7 billion in December, which was above the USD 2.2 billion surplus registered in the same month the previous year. Moreover, the services and income balance tallied a USD 11.7 billion deficit in December, which represents a deterioration compared to the USD 10.9 billion shortfall posted in the same month of the previous year.
The moving 12-month current account deficit widened slightly from USD 81.1 billion in November to USD 81.4 billion in December, representing approximately 3.7% of GDP.
LatinFocus Consensus Forecast participants expect a current account deficit of 3.2% of GDP in 2014, which is unchanged from last month's forecast. For 2015, panelists expect that the current account deficit will remain stable at 2.9% of GDP.
Author: Carl Kelly, Economist