Brazil’s current account posts a deficit worth USD 4bn in March 2021

Brazil’s current account deficit stood at USD 4bn in March 2021, compared to a gap of USD 4.3bn in March 2020, according to the local central bank. The trade balance posted a deficit of USD 437mn, compared to a USD 2bn surplus a year earlier, as imports jumped by 53.6% y/y, reflecting increased imports of parts for oil and gas extraction, while total exports rose by 33.7%.

The services deficit was USD 1.1bn in March 2021 (-36.5% y/y), as international traveling and equipment rental plunged amid the pandemic. The primary income deficit was curbed to USD 3bn from USD 4.8bn in March 2020, reflecting lower profits of foreign companies.

Further data and analysis on Brazil’s economy is available on the CEIC Brazil Economy in a Snapshot – Q1 2021 report.