Brazil Current Account June 2019


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.

Analysts who participated in this month’s LatinFocus Consensus Forecast expect a current account deficit of 1.0% of GDP in 2019. For 2020, panelists expect the current account deficit to widen to 1.5% of GDP.

Author: Angela Bouzanis, Lead Economist

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Brazil Current Account Chart

Brazil Current Account June 2019

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

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