Brazil: Current account posts second consecutive surplus
May 23, 2017
Brazil’s current account balance recorded a second surplus in a row in April, coming in at USD 1.2 billion. The result followed March’s USD 1.4 billion surplus, which had been the highest positive balance in nearly 8 years. Moreover, April’s result was starkly above the USD 400 million surplus recorded in the same month of 2016 and in line with market expectations. External accounts have been a bright spot in Brazil’s recent data as the country enters a recovery phase after a deep recession.
The trade surplus came in at a strong USD 7.0 billion as exports recorded a fourth consecutive double-digit expansion over the same month last year. Higher prices for key exports such as iron ore, soil and oil have boosted revenues, along with a bumper year for crops of soy and corn. Imports also expanded robustly, but at a slower pace than in April. Meanwhile, foreign direct investment edged down from March and came in at USD 7.0 billion.
In April, the 12-month accumulative current account deficit narrowed to USD 19.8 billion from USD 20.6 billion in March. April’s result marked a deficit of approximately 1.1% of GDP.