Brazil: Current account posts another deficit in March
In March, Brazil’s current account logged a smaller deficit of USD 4.0 billion, compared to the USD 4.3 billion shortfall posted in March 2020, while widening from the USD 3.2 billion deficit in February.
March’s result largely came on the back of narrower shortfalls in the services and primary income accounts, while the goods trade balance swung from surplus to deficit (March 2021: USD 0.4 billion deficit; March 2020: USD 2.1 billion surplus), as imports increased at a quicker rate than exports. Furthermore, net foreign investment weakened in the month, totaling USD 6.9 billion (March 2020: USD 7.4 billion).
Accordingly, the 12-month sum of the current balance narrowed to a USD 17.8 billion deficit from the USD 18.1 billion shortfall recorded in February, which was equivalent to approximately 1.2% of GDP (February: Approximately 1.3% of GDP).