Brazil: Current account swings to deficit in June
July 25, 2019
Brazil’s current account balance came in at a deficit of USD 2.9 billion in June, contrasting the USD 160 million surplus recorded in the same month of 2018 and marking the largest deficit since January.
The result reflected a notable deterioration in the trade surplus which fell to USD 4.3 billion in June, from June 2018’s USD 5.8 billion. A sharp contraction in export growth, which plunged 10.4% amid falling soybeans exports and depressed demand from Argentina, was chiefly behind the smaller surplus. Meanwhile, foreign direct investment came in at USD 2.2 billion in June, significantly down from June 2018’s USD 6.9 billion.
Accordingly, the 12-month trailing current account deficit widened from USD 14.0 billion in May to USD 17.1 billion in June. The result is equal to approximately 0.9% of GDP.