Brazil: Current account swings to largest surplus in nearly two years in May
Brazil’s current account recorded a USD 0.6 billion surplus in May, swinging from both the USD 4.6 billion shortfall posted in the same month last year and from the USD 1.2 billion deficit clocked in April. May’s result was the largest surplus since June 2021.
May’s result chiefly reflected the goods trade balance posting the largest surplus in the series’ history (USD 9.7 billion). Moreover, the services account deficit narrowed from the same month last year. Lastly, net foreign investment was positive in May and higher than in the same month last year, totaling USD 5.4 billion (May 2022: USD +4.0 billion).
Meanwhile, the 12-month sum of the current account balance narrowed to USD 48.5 billion in May from the USD 51.2 billion shortfall recorded in May 2022. This was equivalent to approximately 2.5% of GDP (May 2022: approximately 2.9% of GDP).