Itaú BBA - Current account deficit of 0.8% of GDP in 2018

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Current account deficit of 0.8% of GDP in 2018

January 28, 2019

Smaller trade surplus drove current account deficit to 0.8% of GDP in 2018

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

• The current account ended 2018 with a $14.5 billion deficit or 0.8% of GDP ($7.2 billion or 0.4% of GDP in 2017). The smaller trade balance was behind the widening deficit, as imports increased faster than exports. The income deficit was narrower than in 2017, while the service deficit remained virtually stable. In terms of financing, direct investment in the country was still high in 2018.

• For the next years, we maintain our expectation of growing deficits, but to comfortable levels that do not compromise the sustainability of Brazil’s external accounts.
 

Julia Gottlieb
Thales Caramella
 

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



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