Brazil: Current account logs another surplus in June
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).