Brazil: Current account shortfall narrows in February
Brazil’s current account recorded a USD 2.8 billion deficit in February, narrowing from the USD 4.2 billion shortfall posted in the same month last year and from the USD 9.1 billion deficit clocked in January.
February’s result chiefly reflected the services account deficit narrowing by nearly 28% from February 2022. Meanwhile, the goods trade balance surplus narrowed in February. Lastly, net foreign investment was positive in the month, totaling USD 6.5 billion in inflows (February 2022: USD +10.8 billion).
Meanwhile, the 12-month sum of the current account balance widened to a USD 54.4 billion deficit in February from the USD 46.8 billion shortfall recorded in February 2022. This was equivalent to approximately 2.8% of GDP, a proportion which was broadly stable form February 2022.