Itaú BBA - $11.9 billion current account deficit in January

Macro Brazil

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$11.9 billion current account deficit in January

febrero 21, 2020

The retreat in the service and income deficits could not offset the decline in trade balance in January


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

 The current account posted a $11.9 billion deficit in January, which was wider than our forecast (-$11 billion) and market estimates (-$11.3 billion). The income account was behind the main difference vs. our forecast.   

 The current account deficit over 12 months amounted to $52.3 billion, or 2.9% of GDP.

 For the coming years, we expect current account deficit to hover around 3.0% of GDP, in line with the economic rebound. Even at a higher level, the current account deficit will still be comfortably financed by foreign direct investment. 
 

Julia Gottlieb
Thales Caramella


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



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