International Reserves in Brazil
Brazil - International Reserves
Current account swings into deficit in September
Brazil’s current account recorded a deficit of USD 1.7 billion in September, deteriorating from the USD 0.3 billion shortfall recorded in September 2020 and contrasting the USD 1.8 billion surplus clocked in August of this year.
September’s result largely reflected a lower goods surplus, with both the primary income account deficit and the services account shortfall reducing compared to a year ago. Meanwhile, net foreign investment strengthened in the month, totaling USD 4.5 billion (September 2020: USD 3.4 billion).
Accordingly, the 12-month sum of the current balance widened slightly to a USD 20.7 billion deficit from the USD 19.3 billion shortfall recorded in August, which was equivalent to approximately 1.3% of GDP (August: Approximately 1.2% of GDP).
Commenting on the outlook for Brazil’s current account, Alberto Ramos, economist at Goldman Sachs, noted:
“Overall, the short-term current account dynamics remain benign given still solid export demand and terms of trade compounded by a weak/competitive real effective exchange rate. However, beyond favorable cyclical dynamics, a deep fiscal adjustment to reduce the highly negative public sector savings remains key to enable a permanent structural current account adjustment (rather than just a cyclical adjustment driven by the weak below-potential domestic demand).”
The LatinFocus Consensus Forecast projects a current account deficit of 0.5% of GDP in 2021. For 2022, panelists foresee the current account deficit at 1.3% of GDP.
Brazil - International Reserves Data
|International Reserves (USD)||356||365||374||375||357|
5 years of economic forecasts for more than 30 economic indicators.
Brazil International Reserves 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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November 4, 2021
Industrial output decreased 0.4% month-on-month in seasonally-adjusted terms in September (August: -0.7% mom).
November 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 51.7 in October, down from 54.4 in September and hitting its lowest level since June 2020.
October 27, 2021
At its 26–27 October meeting, the Monetary Policy Committee (COPOM) of Brazil’s Central Bank (BCB) unanimously decided to raise the benchmark SELIC interest rate by 150 basis points to 7.75%—as widely expected by market analysts—which marked the sixth consecutive hike.
October 25, 2021
The seasonally-adjusted consumer confidence index published by the Getulio Vargas Foundation rose to 76.3 in October, following September’s 75.3 reading.
October 23, 2021
The Getulio Vargas Foundation’s (Fundação Getúlio Vargas) industrial business confidence index came in at 105.2 in October, down from 106.4 in September.