External Debt in Brazil
Brazil - External Debt
Current account deficit narrows in December
Brazil’s current account posted a USD 5.7 billion deficit in December, narrowing from the USD 6.1 billion shortfall registered in December 2018 but significantly wider than the USD 2.2 billion deficit in November.
The result was largely due to a smaller primary income deficit as well as a narrower merchandise trade surplus (December: USD 5.6 bn; December 2018: USD 6.4 bn). Exports posted a sizable contraction in December amid subdued demand from key trading partners, particularly Argentina, although imports also fell but at a softer pace. Conversely, foreign direct investment jumped at the end of the year, totaling USD 9.4 billion (December 2018: USD 8.3 bn). The shortfall in the services account widened in December compared to the same month last year.
Accordingly, the full-year current account deficit rose to USD 50.8 billion in 2019 from USD 41.5 billion deficit recorded in 2018, which was equivalent to approximately 2.8% of GDP.
The latest LatinFocus Consensus Forecast projects a current account deficit of 2.8% of GDP in 2020. For 2021, panelists foresee a current account deficit of 2.9% of GDP.
Brazil - External Debt Data
|External Debt (% of GDP)||14.4||18.6||18.1||15.5||17.2|
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||6.79||-0.82 %||Dec 31|
|Exchange Rate||4.02||-0.13 %||Jan 01|
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February 17, 2020
The Brazilian real continued its downward spiral in early February, hitting an all-time low of BRL 4.36 per USD on 12 February, marking an over 6.0% depreciation over the prior month.
February 14, 2020
Economic activity fell 0.3% in seasonally-adjusted month-on-month terms in December, following November’s revised 0.1% decrease (previously reported: +0.2% month-on-month) and missing expectations of a softer 0.2% drop.
February 12, 2020
Retail sales, excluding cars and construction, fell 0.1% over the prior month on a seasonally-adjusted basis in December, contrasting November’s revised 0.7% increase (previously reported: +0.6% month-on-month).
February 10, 2020
On 7 February, the Brazilian real fell to a fresh record low against the U.S. dollar, ending the day at 4.32 per USD, which marked a 6.2 depreciation over the same day in January.
February 10, 2020
Consumer prices increased 0.21% month-on-month in January, following December’s sharp 1.15% increase.