Exports To China Improve C/A Outlook

We have revised down Brazil's current account deficit forecast for 2009 to 1.4% of GDP, from 2.4% previously, as we now see a stronger performance in the country's trade balance this year. With Chinese strategic stockpiling of commodities proving instrumental in the recent performance of the export sector, however, we caution of a sudden decline in exports, should bilateral trade volumes come off the boil.

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