Brazil Booms on Trade Surplus

Brazil’s current account surplus for the month of March came in above market expectations. The nation has recorded a surplus of USD 1.397 billion, as compared with the market’s stability projection. This is the largest surplus recorded for March in 12 years. This follows Brazil posting a sharp rise in its trade balance. It had recorded a trade surplus of USD 7.1 billion.

Brazil’s trade surplus has been stimulated by a sharp decline in imports after a two year of recession and a rise in exports boosted by a weaker Brazilian real. In March, Brazil attracted foreign direct investment of USD 7.1 billion. The Central Bank of Brazil projects the trade surplus to reach USD 51 billion in 2017. But the nation’s current account remains in negative territory.