Brazil: Current account deficit widens in February
March 22, 2013
In February, the current account balance incurred a deficit of USD 6.6 billion, which was larger than both the USD 1.7 billion shortfall registered in the same month last year and the USD 6.0 billion deficit expected by the markets.
The trade balance registered a monthly deficit of USD 1.3 billion in February, which contrasted the USD 1.7 billion surplus registered in the same month last year. Moreover, the services and income balance tallied a USD 5.8 billion deficit in February, down from the USD 3.6 billion shortfall posted in the same month last year.
That said, the moving 12-month current account deficit widened from USD 58.6 billion in January to USD 63.5 billion in February (approximately 2.8% of GDP), which brings the ratio to levels last seen in 2002.
LatinFocus Consensus Forecast participants expect a current account deficit of 2.7% of GDP this year, which is down 0.1 percentage points from last month's forecast. For 2014, panellists anticipate the current account deficit to remain stable at 2.7% of GDP.