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

Macro Brazil

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Wider-than-expected current account deficit in June

julio 25, 2019

Larger-than-anticipated profit and dividend remittances were behind pressured the primary income balance in June


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

 The current account posted a $2.9 billion deficit in June, which was wider than our forecast (-$1.4 billion) and market estimates (-$1.5 billion). Larger-than-anticipated profit and dividend remittances were behind the surprise and pressured the primary income balance. Notwithstanding the increase at the margin, the deficit accumulated over 12 months remains at a historically low level: 0.9% of GDP. 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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