Brazil Current Account May 2016


Brazil: Current account surplus grows in May

June 24, 2016

In May, the current account balance registered a surplus of USD 1.2 billion, which marked the best result since August 2008 and notably contrasted the USD 3.4 billion deficit recorded in May 2015. The result came in below market analysts’ expectations of a USD 1.9 billion surplus. In the midst of an onslaught of negative economic data concerning Latin America’s largest economy, the improving current account balance has been a bright spot.

The trade balance registered a surplus of USD 6.4 billion in May, which was above April’s USD 4.9 billion surplus and the USD 2.8 billion surplus tallied in May 2015. Although weak external demand is hurting Brazil’s exports, the low value of the real is supporting sales abroad and the abysmal economy has caused import demand to drop.

The moving 12-month current account deficit recorded USD 29.5 billion in May, which was a smaller shortfall than April’s USD 34.1 billion deficit. May’s result is equivalent to approximately 1.7% of GDP.

Analysts who participated in this month’s LatinFocus Consensus Forecast panel expect a current account deficit of 1.1% of GDP in 2016. For 2017, panelists expect the current account deficit to be 1.0% of GDP.

Author:, Economist

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Brazil Current Account Chart

Brazil Current Account May 2016 1

Note: Monthly and 12-month current account balance in USD billion.
Source: Central Bank of Brazil (BCB) and FocusEconomics calculations.

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