Brazil: Current account hits record deficit in January
February 21, 2014
In January, the current account balance incurred a record deficit of USD 11.6 billion. The print was slightly larger than the USD 11.3 billion shortfall registered in the same month last year and was broadly in line with market expectations.
The trade balance registered a record monthly deficit of USD 4.1 billion in January, which was slightly greater than the USD 4.0 billion deficit registered in January 2013. Moreover, the services and income balance tallied a USD 7.7 billion deficit in January, which represents a deterioration compared to the USD 7.5 billion shortfall posted in the same month last year.
The moving 12-month current account deficit widened slightly from USD 81.4 billion in December to USD 81.6 billion in January, representing approximately 3.7% of GDP.
LatinFocus Consensus Forecast participants expect a current account deficit of 3.2% of GDP in 2014, which is unchanged from last month's forecast. For 2015, panelists expect that the current account deficit will remain stable at 2.9% of GDP.
Author: Carl Kelly, Economist