Itaú BBA - Remittance of dividends and profits pressure current account deficit in August

Macro Brazil

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Remittance of dividends and profits pressure current account deficit in August

septiembre 23, 2019

The current account posted a $4.3 billion deficit in August, which was wider than our forecast (-$3.9 bn) and market estimates (-$4.1 bn).


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

• The current account posted a $4.3 billion deficit in August, which was wider than our forecast (-$3.9 billion) and market estimates (-$4.1 billion). Larger-than-anticipated profit and dividend remittances were behind the surprise vs. our call. For the next years, we maintain our expectation of a gradual increase in the current account deficit, but not to the point of compromising 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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