Brazil: Current account records surplus for fourth month straight in July
Brazil’s current account balance registered a surplus for the fourth month straight in July, logging a USD 1.6 billion surplus. July’s reading contrasted the USD 9.8 billion deficit recorded in the same month a year earlier; however, it was down from June’s surplus of USD 3.9 billion.
July’s print largely came on the back of a smaller deficit in the services account and a narrower primary income deficit. Moreover, the merchandise trade surplus increased in the month to USD 7.4 billion from USD 1.7 billion in July 2019 on a more marked decline in imports than of exports. Meanwhile, net foreign direct investment weakened in July, totaling USD 2.7 billion (July 2019: USD 5.3 billion).
Accordingly, the 12-month sum of the current account balance narrowed to a USD 31.7 billion, which equates to approximately 2.0% of GDP, down from the USD 43.2 billion shortfall logged in the 12 months ending in June (2.7% of GDP).