Brazil Current Account June 2020


Brazil: Current account logs another surplus in June

July 28, 2020

Brazil’s current account balance registered a surplus for the fourth month straight in June, logging a USD 2.2 billion surplus. June’s reading contrasted the USD 2.7 billion deficit recorded in the same month a year earlier and was up from May’s surplus of USD 1.0 billion.

June’s reading largely reflected a narrower shortfall in the services account and a lower primary income deficit. Furthermore, the trade surplus increased in the month. The merchandise trade surplus rose to USD 6.9 billion from USD 4.7 billion in June 2019 on a sharper decline in imports than of exports. Moreover, net foreign direct investment strengthened in June, totaling USD 4.8 billion (June 2019: USD 0.6 billion).

Accordingly, the 12-month sum of the current account balance narrowed to a USD 38.2 billion, which equates to approximately 2.4% of GDP, down from the USD 43.1 billion shortfall logged in the 12 months ending in May (2.6% of GDP).

The LatinFocus Consensus Forecast projects a current account deficit of 1.4% of GDP in 2020. For 2021, panelists foresee the current account deficit at 1.9% of GDP.

Author:, Economist

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Brazil Current Account Chart

Brazil Current Account June 20 20 0

Note: Monthly and 12-month current account balance in USD billion.
Source: Central Bank of Brazil (BCB) and FocusEconomics calculations.

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