Brazil: Current account posts deficit in July
Brazil’s current account recorded a USD 3.6 billion deficit in July, improving from the USD 5.3 billion shortfall posted in July 2022 but deteriorating from the USD 1.3 billion deficit tallied the prior month.
In July, the goods trade balance widened to a USD 7.2 billion surplus compared to the same month last year. Meanwhile, the services account deficit was unchanged from July 2022. Lastly, net foreign investment was positive in July but lower than in the same month last year, totaling USD 4.2 billion in inflows (July 2022: USD +7.2 billion).
Meanwhile, the 12-month sum of the current account balance widened to a USD 51.1 billion shortfall in July from the USD 48.8 billion deficit clocked in July 2022. This was equivalent to approximately 2.5% of GDP (July 2022: approximately 2.7% of GDP).