Brazil: Current account posts fourth consecutive surplus in June
July 28, 2017
Brazil’s current account balance recorded a fourth consecutive surplus in June, coming in at USD 1.3 billion. The result followed May’s USD 2.9 billion surplus and contrasted the USD 2.5 billion deficit recorded in the same month last year. External accounts have been a bright spot in Brazil’s data despite the country’s deep recession.
The trade surplus came in at a notable USD 7.2 billion as exports recorded another month of double-digit expansion over the same month last year. Higher prices for key exports such as iron ore have boosted revenues, along with a bumper year for crops of soy and corn. Imports also expanded robustly. Meanwhile, foreign direct investment rose from May’s USD 2.9 billion to USD 4.0 billion in June.
In June, the 12-month accumulative current account deficit narrowed to USD 14.3 billion from USD 18.1 billion in May. June’s result marked a deficit of approximately 0.8% of GDP.
Author: Christopher Thomas, Economist