Brazil: Current account records first surplus since 2009
April 26, 2017
Brazil’s current account balance swung to surplus in March, coming in at USD 1.4 billion. The result marked the first surplus in nearly 8 years and starkly contrasted the USD 900 million deficit recorded in the same month of 2016. The improvement surprised market analysts who had forecast a USD 900 million gap.
The trade surplus rose to a multi-year high of USD 7.1 billion in March, boosting the current account. Exports growth recorded a third consecutive double-digit expansion over the same month last year, while imports also expanded robustly, but at a slower pace. Meanwhile, foreign direct investment picked up from February and came in at USD 7.1 billion.
In March, the 12-month accumulative current account deficit narrowed slightly to USD 20.6 billion from USD 22.8 billion in February. March’s result marked a deficit of approximately 1.1% of GDP.