External Debt in Brazil
Brazil - External Debt
Current account deficit more than doubles in August
Brazil’s current account balance came in at a deficit of USD 4.3 billion in August, over double the USD 1.7 billion shortfall recorded in the same month of 2018. The result was a larger shortfall then market analysts’ expectations of a USD 4.0 billion deficit.
The result reflected a jump in the primary income deficit to USD 4.7 billion (August 2018: USD 1.0 billion deficit), amid greater remittances sent abroad and outflows from investment a drop-in reinvestment in the country. Meanwhile, the trade surplus widened coming in at USD 3.2 billion in August, up from the USD 2.8 billion recorded in the same month last year. That said, the widening was on the back of plunging imports and exports also recorded a significant drop. Meanwhile, foreign direct investment fell slightly but still remained solid, coming in at USD 9.5 billion in August (August 2018: USD 9.7 billion).
Along with August’s release, the Central Bank revised historical balance of payments statistics and updated its methodology for calculating some cross-border flows. This led to a notable revision in the current account deficit in for 2017, 2018 and 2019. Accordingly, the 12-month trailing current account deficit came in at USD 33.9 billion in August, widening from July’s revised USD 31.3 billion (previously reported: USD 22.1 billion). The result is equal to approximately 1.7% of GDP.
Our panelists are still taking into account the most recent revisions. The latest LatinFocus Consensus Forecast projects a current account deficit of 1.4% of GDP in 2019. For 2020, panelists expect the current account deficit to widen to 1.6% of GDP.
Brazil - External Debt Data
|External Debt (% of GDP)||12.7||14.4||18.6||18.1||15.5|
5 years of economic forecasts for more than 30 economic indicators.
Brazil External Debt Chart
Source: Central Bank of Brazil and FocusEconomics calculations.
|Bond Yield||7.30||-0.82 %||Sep 04|
|Exchange Rate||4.10||-0.13 %||Sep 04|
|Stock Market||101,201||-0.40 %||Sep 04|
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October 2, 2019
Economic activity fell 0.2% in seasonally-adjusted month-on-month terms, according to the Central Bank’s monthly indicator for economic activity.
October 1, 2019
Industrial production jumped 0.8% month-on-month in seasonally-adjusted terms in August, contrasting July’s revised 0.2% fall (previously reported: -0.3% month-on-month).
October 1, 2019
Conditions in Brazil’s manufacturing sector continued improving in September.
September 30, 2019
Business sentiment in Brazil’s industrial sector improved in September, following a slight deterioration in August.
September 25, 2019
The seasonally-adjusted consumer confidence index published by the Getulio Vargas Foundation (FGV) increased to 89.7 points in September, above August’s 89.2 points and marking the best performance since March this year.