Brazil Current Account Gap Widens Less Than Forecast in July

Brazil’s current account gap widened less than analysts forecast as a weaker real and a shrinking economy reduces imports.

The deficit in the current account, the broadest measure of trade in goods and services, widened to $6.2 billion in July from a revised $2.6 billion a month earlier, the central bank said in a report distributed Tuesday in Brasilia. The gap compares with a median estimate of $6.6 billion in a Bloomberg survey of 24 analysts. The 12-month gap narrowed to $89.4 billion from a revised $92.5 billion.

Brazil’s annual current account gap has been shrinking since the start of the year as Latin America’s biggest economy heads to its longest recession since 1931. Imports of goods and services have plunged as inflation erodes wages, Brazilian lose jobs and the real weakens.

The real gained 0.5 percent to 3.5364 per U.S. dollar at 10:45 a.m. local time, trimming its 12 month loss to 35 percent. It’s the worst performer among 16 major currencies tracked by Bloomberg.

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