Itaú BBA - Current account posts a $329 million surplus in October

Macro Brazil

< Volver

Current account posts a $329 million surplus in October

noviembre 27, 2018

Despite the weaker than expected reading, the current account deficit receded at the margin.


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

The current account posted a $329 million surplus in October, disappointing our estimate ($1.1 billion) and market consensus ($925 million). The biggest surprise came in interest payments and other services deficit. Despite the weaker than expected reading, the current account deficit receded at the margin.  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), but not to the point of compromising Brazil’s external sustainability. Direct investment in the country 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 



< Volver