Brazil: Brazil's current account deficit widens in May
June 27, 2011
In May, the monthly current account balance incurred a deficit of USD 4.1 billion, which was up from the USD 3.5 billion registered in April. Although the trade balance remained in surplus in May totalling USD 3.5 billion, it was not enough to offset the deficit in the services and income that accrued to USD 7.9 billion. As a result, the 12-month current account deficit widened to USD 51.0 billion in May, up from USD 48.9 billion recorded in April. The swelling current account deficit reflects the gap between domestic investment and saving in the economy, as high interest rates and a solid pace of economic growth attract strong inflows of foreign investment.