Itaú BBA - $435 million current account surplus in June

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$435 million current account surplus in June

July 26, 2018

The current account deficit showed moderation at the margin in June, given the narrower trade surplus

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

The current account posted a $435 million surplus in June, slightly above our estimate ($300 million) and market consensus ($250 million). Notwithstanding a positive monthly balance, the current account deficit widened at the margin due to the narrower trade surplus. For the next years, we maintain our expectation of a gradual increase in the current account deficit — in line with somewhat of a rebound in economic activity (reducing the trade surplus) and due to the large stock of foreign investment in the country (which should pressure the profits and dividends line) —, but not to the point of compromising Brazil’s external sustainability. Although direct investment in the country stabilized at a lower level, this is still the main source of financing of the current account deficit.

Julia Gottlieb

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



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