Brazil: Current account gap widens in May on weak trade surplus
June 21, 2013
In May, the current account balance incurred a deficit of USD 6.4 billion, which was larger than the USD 3.4 billion shortfall registered in the same month last year but was in line with market expectations.
The trade balance registered a monthly surplus of USD 759 million in May, which was well below the USD 3.0 billion surplus registered in the same month last year. Moreover, the services and income balance tallied a USD 7.3 billion deficit in May, which represents a deterioration from the USD 6.7 billion shortfall posted in the same month last year.
The moving 12-month current account deficit widened from USD 70.0 billion in April to USD 73.0 billion in May (approximately 3.2% of GDP), which brings the ratio to levels last seen in 2002.
LatinFocus Consensus Forecast participants expect a current account deficit of 3.0% 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 3.0% of GDP.