Brazil: Current account narrows deficit in February
March 26, 2021
In February, Brazil’s current account posted a smaller deficit of USD 2.3 billion, compared to the USD 4.7 billion shortfall logged in the same month last year, while also narrowing from the USD 7.1 deficit in January.
February’s result chiefly reflected narrower deficits in the services and primary income accounts, while the goods trade balance posted a lower surplus (February 2021: USD 0.4 billion surplus; February 2020: USD 1.8 billion), as imports rose at a faster pace than exports. Meanwhile, net foreign investment rose notably in the month, totaling USD. 9.0 billion (February 2020: USD 2.6 billion).
Accordingly, the 12-month sum of the current account balance narrowed to a USD 6.9 billion deficit from the USD 9.2 billion shortfall recorded in January, which was equivalent to approximately 0.5% of GDP (January: approximately 0.6% of GDP).
Author: Hanna Andersson, Economist