Brazil: Current account swings to deficit in May
Brazil’s current account recorded a USD 3.5 billion deficit in May, deteriorating from the USD 2.5 billion surplus recorded in May last year, and from the USD 1.1 billion surplus clocked in April 2022.
May’s result chiefly reflected a smaller surplus in trade goods compared to May 2021. Additionally, the services account shortfall widened compared to the same month last year, as did the primary income account deficit. Meanwhile, net foreign investment was positive in the month, totaling USD 4.5 billion in inflows (May 2021: USD +2.2 billion)
Accordingly, the 12-month sum of the current balance widened to a USD 32.9 billion deficit from the USD 26.8 billion shortfall recorded in April. This was equivalent to approximately 1.9% of GDP (April: approximately 1.6% of GDP).