Economics
Tumbling Brazilian Economy Sees One Silver Lining Amid Pandemic
- Long-running current account deficit may turn into surplus
- Recession, weaker real and no international travel narrow gap
A commuter wearing a protective mask waits for a train at the Se subway station in Sao Paulo, Brazil, on May 26.
Photographer: Jonne Roriz/BloombergThis article is for subscribers only.
Simultaneously grappling with surging deaths from Covid-19, recession and a weak currency, Brazil at least won’t have problem finding dollars to pay for imports and service its foreign debt in the aftermath of the pandemic.
As Brazilians stop traveling and spending money abroad, the country’s long-running current account deficit is narrowing fast and could even become a surplus this year. In April alone, it was a positive $3.8 billion, the highest ever according to data compiled by Bloomberg.