Itaú BBA - $32 million current account surplus in September

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$32 million current account surplus in September

October 25, 2018

The current account deficit narrowed at the margin in September, but remains stable at 0.8% of GDP over 12 months


For the version with all charts and tables, please open the attached pdf file 

The current account had a $32 million surplus in September, printing close to our estimate ($100 million) and below market consensus ($430 million). For the next years, we maintain our expectation of a gradual increase in the current account deficit, driven by somewhat of a rebound in economic activity (reducing the trade surplus) and by the large stock of foreign investments in the country (which will pressure the profits and dividends account), but not to the point of compromising the sustainability of Brazil’s external accounts. Direct investment in the country advanced is still the main source of financing for the current account deficit.
 

Thales Caramella
 

For the version with all charts and tables, please open the attached pdf file 



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