Brazil: Current account records another surplus in May
June 25, 2021
Brazil’s current account posted a surplus of USD 3.8 billion in May, contrasting the USD 0.5 billion deficit recorded in May last year, while narrowing somewhat from the USD 5.7 billion surplus logged in April.
May’s result chiefly reflected a greater goods surplus as exports rose at a faster clip than imports, while the services and primary income accounts logged wider shortfalls compared to a year ago. Meanwhile, net foreign investment weakened in the month, totaling USD 1.2 billion (May 2020: USD 3.1 billion).
Accordingly, the 12-month sum of the current balance narrowed to a USD 8.4 billion deficit from the USD 12.7 billion shortfall recorded in April, which was equivalent to approximately 0.6% of GDP (April: Approximately 0.9% of GDP).
Author: Hanna Andersson, Economist