Brazil: Current account deficit widens in February
Latest reading: The current account posted a USD 8.8 billion deficit in February, deteriorating from the USD 8.6 billion deficit booked in January (February 2024: USD 3.9 billion deficit). Meanwhile, in the 12 months to February, the current account recorded a USD 70.2 billion deficit, compared to the USD 65.3 billion deficit recorded in the 12 months to January.
Meanwhile, the merchandise trade balance worsened from the previous month, recording a USD 0.3 billion deficit in February (January 2025: USD 2.3 billion surplus). This was the first trade shortfall since January 2022 and missed market expectations of a USD 1.9 billion surplus: Merchandise exports fell 1.8% annually in February (January: -5.2% year on year), while merchandise imports soared 27.6% (January: +12.5% yoy), marking the strongest result since August 2022. The fall in exports was prompted by a decrease in shipments by the extractive industry, while the surge in imports was spearheaded by manufacturing purchases and agricultural imports.