Brazil: Current account records largest deficit since January 2020 in December
Brazil’s current account recorded a USD 10.9 billion deficit in December, widening markedly from the USD 7.7 billion shortfall posted in the same month last year and from the USD 0.6 billion deficit clocked in November 2022.
December’s result chiefly reflected the services account deficit increasing by nearly 50% from the same month a year ago. More positively, the goods trade balance recorded a larger surplus than in December 2021. Meanwhile, net foreign investment was positive in the month, totaling USD 5.6 billion in inflows (December 2021: USD 5.2 billion outflows).
Meanwhile, the 12-month sum of the current account balance widened to a USD 55.7 billion deficit in December from the USD 46.4 billion shortfall recorded in December 2021. This was equivalent to approximately 2.9% of GDP (December 2021: approximately 2.8% of GDP).