Economic Analysis - Politics Could Undermine External Stability - JAN 2018
BMI View : Brazil will maintain its largest goods trade surpluses in a decade over the coming quarters, which will keep the current account shortfall modest and underpin external stability. That said, the upcoming election could drive capital outflows that would undermine growth.
Brazil's current account deficit will remain modest in 2018, underpinned by a strong goods trade surplus.
Capital inflows will cover external financing needs, bolstering reserves and external account stability.
Shortfalls Will Remain Modest Brazil - Current Account f = BMI forecast. Source: BCB, BMI
This article is part of our Brazil coverage. To access this article subscribe now or sign up for free trial