Itaú BBA - Wider-than-expected current account deficit in July

Macro Brazil

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Wider-than-expected current account deficit in July

agosto 26, 2019

Profit and dividend remittances and a weaker trade balance lead to a wider current account deficit in July.


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

• The current account posted a $9.0 billion deficit in July, which was wider than our forecast (-$7.0 billion) and market estimates (-$6.0 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
 

Thales Caramella
 

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



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