Brazil: Current account posts third consecutive surplus in May
June 28, 2017
Brazil’s current account balance recorded a third consecutive surplus in May, climbing to a near decade-high of USD 2.9 billion. The result followed April’s USD 1.2 billion surplus and came in slightly below market expectations. Moreover, May’s result was similarly above the USD 1.2 billion surplus recorded in the same month of 2016. External accounts have been a bright spot in Brazil’s recent data as the country enters a recovery phase after a deep recession and despite recently heightened political noise.
The trade surplus came in at a multi-year high of USD 7.7 billion as exports recorded a fifth consecutive double-digit expansion over the same month last year. Higher prices for key exports such as iron ore and oil have boosted revenues, along with a bumper year for crops of soy and corn. Imports also expanded robustly, briskly picking up pace from April. Meanwhile, foreign direct investment fell considerably from April and came in at USD 2.9 billion.
In May, the 12-month accumulative current account deficit narrowed to USD 18.1 billion from USD 19.8 billion in April. May’s result marked a deficit of approximately 1.0% of GDP.