Brazil's current account balance shifted to a USD 2.91 billion deficit in June 2019 from a USD 0.16 billion surplus in the corresponding month of the previous year and compared with market expectations of a USD 1.5 billion shortfall. The goods surplus narrowed to USD 4.30 billion from USD 5.51 billion a year earlier, as exports dropped 10.8 percent namely soy and manufactured goods sales to Argentina and imports fell 6.7 percent. Additionally, the services gap widened to USD 3.28 billion from USD 2.98 billion, mostly due to intellectual property; and the primary income shortfall rose to USD 4.12 billion from USD 2.54 billion. Meanwhile, the secondary income surplus increased slightly to USD 0.19 billion from USD 0.18 billion. Considering the first half of the year, the country recorded a USD 10.55 billion current account gap, compared to a USD 8.0 billion shortfall in the same period of 2018. Current Account in Brazil averaged -1659.02 USD Million from 1980 until 2019, reaching an all time high of 3104.70 USD Million in May of 2017 and a record low of -13345 USD Million in January of 2014.
Current Account in Brazil is expected to be -200.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in Brazil to stand at 450.00 in 12 months time. In the long-term, the Brazil Current Account is projected to trend around -2800.00 USD Million in 2020, according to our econometric models.