Brazil's current account deficit widened to USD 4.27 billion in August 2019 from USD 1.76 billion in the corresponding month of the previous year and compared with market expectations of a USD 3.96 billion shortfall. The primary income gap increased sharply to USD 4.73 billion from USD 1.04 billion a year earlier. Meanwhile, the goods surplus rose to USD 2.66 billion from USD 2.33 billion, as imports dropped 16 percent while exports fell at a slower 12.7 percent. Additionally, the services gap narrowed to USD 2.46 billion from USD 3.23 billion and the secondary income surplus went up to USD 0.25 billion from USD 0.18 billion. Considering the first eight months of the year, the country recorded a USD 30.28 billion current account shortfall, compared to a USD 18.37 billion deficit in the same period of 2018. Current Account in Brazil averaged -1726.09 USD Million from 1980 until 2019, reaching an all time high of 3006.80 USD Million in July of 2006 and a record low of -13344.90 USD Million in January of 2014.
Current Account in Brazil is expected to be -4700.00 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.