Brazil: Current account records surplus in September
October 26, 2017
Brazil’s current account balance came in at a surplus of USD 434 million in September, which contrasted the USD 504 million deficit recorded in September 2016. The result also overshot market analysts’ expectations of a USD 250 million deficit.
The trade surplus came in at USD 5.2 billion in September, which was above September 2016’s USD 3.8 billion. Exports recorded another month of double-digit expansion and import growth accelerated in September, helped by reviving domestic demand. Foreign direct investment also picked up in September and came in at USD 6.3 billion, likely helped by the stabilizing economic backdrop.
The current account has improved notably over the past year, which is most clearly seen when examining the 12-month accumulative current account deficit . This deficit narrowed to USD 12.6 billion in September from USD 13.6 billion in August, the lowest shortfall since March 2008. September’s result marked a deficit of approximately 0.6% of GDP.