Brazil Current Account February 2021

Brazil

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).

The LatinFocus Consensus Forecast projects a current account deficit of 1.0% of GDP in 2021. For 2022, panelists foresee the current account deficit at 1.5% of GDP.


Author:, Economist

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Brazil Current Account February 2021 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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