Brazil: Current account records surplus in October

Brazil’s current account balance came in at a surplus of USD 329 million in October, contrasting the USD 686 million deficit recorded in the same month last year.

The current account surplus was chiefly due to a higher trade surplus, which came in at USD 5.9 billion in October (October 2017: USD 5.2 billion). Both export and import growth picked up notably in October. Meanwhile, foreign direct investment came in at USD 10.4 billion in October, above the USD 8.9 billion recorded in October 2017.

The 12-month accumulative current account deficit narrowed in October to USD 15.4 billion from September’s USD 16.4 billion deficit. October’s result represented approximately 0.8% of GDP.

Brazil Current Account Balance Forecast

Analysts who participated in this month’s LatinFocus Consensus Forecast expect a current account deficit of 1.5% of GDP in 2019. For 2020, panelists expect the current account deficit to widen to 1.6% of GDP.