Brazil: Current account records smallest deficit since August 2010
April 20, 2016
In March, the current account balance registered a deficit of USD 855 million, which was a notable improvement from the USD 5.8 billion deficit recorded in the same month last year. The result was a notable improvement over market analysts’ expectations of a USD 1.2 billion shortfall and marked the smallest deficit since August 2010. The slimmer current account deficit has been a bright spot in recent economic data for Brazil as the country grapples with recession and high inflation levels.
The trade balance registered a surplus of USD 4.4 billion in March, which was above February’s USD 300 million surplus and the USD 455 million deficit tallied in March 2015. Although weak external demand is hurting Brazil’s exports, the low value of the real and abysmal economy has caused import demand to drop and the trade balance to improve notably.
The moving 12-month current account deficit recorded USD 41.4 billion in March, which was a smaller shortfall than February’s USD 46.3 billion deficit. March’s result is equivalent to approximately 2.4% of GDP.