Brazil: Current account swings back to deficit in July
August 23, 2017
Brazil’s current account balance recorded the first deficit in five months in July, coming in at a shortfall of USD 3.4 billion. The result contrasted June’s USD 1.3 billion surplus but still was an improvement on the USD 4.0 billion deficit recorded in the same month of last year.
The trade surplus came in at a notable USD 6.9 billion, the best result ever tallied in July. Exports recorded another month of double-digit expansion, helped by a bumper year for agricultural products. Meanwhile, imports swung from a contraction in June to an expansion in July. Foreign direct investment came in below expectations and was USD 4.1 billion, below the USD 5.0 billion expected by market analysts.
In July, the 12-month accumulative current account deficit narrowed to USD 13.8 billion from USD 14.3 billion in June. July’s result marked a deficit of approximately 0.7% of GDP.