Brazil: Brazil's current account gap widens in October
November 22, 2011
In October, the current account balance incurred a deficit of USD 3.1 billion, which was notably larger than the USD 2.2 billion deficit recorded in September. The trade balance remained in surplus in October, totaling USD 2.4 billion, while the deficit in the services and income account widened to USD 5.7 billion. The moving 12-month current account deficit narrowed from USD 48.0 billion in September to USD 47.3 billion in October (approximately 2.0% of GDP). The persistent current account deficit reflects a gap between saving and investment in the economy, which has been financed by a considerable amount of capital inflows.