Brazil: Current account gap narrows in June
July 23, 2013
In June, the current account deficit stood at USD 4.0 billion, which was smaller than the USD 4.4 billion shortfall registered in the same month of the previous year. This figure was also much smaller than the USD 5.0 billion deficit the market had expected.
The trade balance reached a monthly surplus of USD 2.3 billion, which was nearly three times as large as the USD 800 million surplus in the same month last year. The services and income deficit was USD 6.5 billion in June, exceeding the USD 5.5 billion deficit posted in the same month last year.
The moving 12-month current account deficit decreased slightly from USD 72.9 billion in May to USD 72.5 billion in June and remained at approximately 3.2% of GDP.
LatinFocus Consensus Forecast participants expect a current account deficit of 3.1% of GDP this year, which is down 0.1 percentage points from last month's forecast. For 2014, panelists expect the current account deficit to remain stable at 3.0% of GDP.
Author: Carl Kelly, Economist