Brazil: Current account shortfall narrows in October
November 25, 2022
Brazil’s current account recorded a USD 4.6 billion deficit in October, narrowing from the USD 6.0 billion shortfall posted in the same month last year, and from the USD 7.1 billion deficit clocked in September 2022.
October’s result chiefly reflected the near doubling of the surplus in trade goods compared to October 2021. Conversely, the services account shortfall widened from the same month last year. Lastly, the primary income account shortfall narrowed in October compared to the same period the year prior. Meanwhile, net foreign investment was positive in the month, totaling USD 5.5 billion in inflows (October 2021: USD +3.4 billion).
Accordingly, the 12-month sum of the current account balance narrowed to a USD 60.3 billion deficit in October from the USD 61.7 billion shortfall recorded in September. This was equivalent to approximately 3.3% of GDP (September: approximately 3.4% of GDP).
Author: Marta Casanovas, Economist