Brasília – the Brazilian current account deficit reached US$ 3.497 billion in July and US$ 28.945 in the first seven months of the year, the Central Bank informed this Tuesday (23rd). The monthly result exceeded the Central Bank’s projection for the period, which was US$ 2.9 billion. In July 2010, the deficit reached US$ 4.589 billion and in the first seven months it hit US$ 28.436 billion.
The current account comprises purchases and sales of goods and services. The calculation includes exports and imports of goods, which comprise the balance of trade. The trade surplus (exports higher than imports) reached US$ 3.135 billion in July and US$ 16.102 billion in the first seven months.
The trade surplus helped prevent the current account deficit from being higher. In turn, the balance on services and income (remittance of profits and dividends, interest payments, international travel, equipment rental, royalties and others) posted a deficit of US$ 6.852 billion last month and of US$ 46.789 billion from January to July this year.
One of the items that contributed to the increased deficit in the balance on services is international travel. Spending by Brazilians abroad is higher than revenues from foreigners’ spending in Brazil, therefore the international travel account recorded a US$ 1.706 billion deficit, in July, and US$ 8,521 billion in the first seven months of the year.
The current account also includes current unilateral transfers, i.e. donations and remittances of dollars to and from other countries, with no counterpart in services or goods. There was a net inflow of US$ 220 million in July, and of US$ 1.743 billion from January until last month.
*Translated by Gabriel Pomerancblum
