Brasília – Brazil had a current account deficit to the tune of USD 7.874 billion in October, the widest deficit for the month since USD 9.305 billion in October 2014, the Central Bank reported this Monday (25). October 2018 had seen a USD 1.964 billion deficit.
Year-to-date through October, the deficit in foreign transactions, purchase and sale of goods and international income transfers hit USD 45.657 billion, up from USD 32.372 billion through October 2018. “The wider deficit came basically as a result of a narrowing of the balance of trade, from USD 5.3 billion [in October 2018] to USD 490 million [last month],” a Central Bank report reads.
The balance of trade is one component of the national current account. Through October, Brazil saw a USD 29.145 billion trade deficit. The primary income result (profits and dividends, interest and wage payments) ran a USD 4.856 billion deficit in October and a USD 46.443 billion deficit year-to-date through October.
The secondary income account (income generated in one country and wired to another, such as US dollar donations and remittances, with no corresponding trade in goods or services) ran a USD 73 million surplus in October and a USD 1.274 billion surplus through October. Services (international travel, transportation, equipment rental etc.) ran a USD 3.581 bn deficit in October and a USD 29.633 billion deficit through October.
Translated by Gabriel Pomerancblum
