Foreign accounts see negative balance of $12.5 bi in 2020

Foreign account saw a negative balance of $12,517 billion in 2020, or 0.87 percent of the country’s gross domestic product (GDP), the Central Bank stated in a report published today (Jan. 27) in Brasília.

In 2019, the deficit had been $50.697 billion (2.70 percent of the GDP) in current transactions—goods and services bought and sold and revenues exchanged between Brazil and other countries.

Central Bank statistics department head Fernando Rocha said the results of the year are straight-forward and were impacted by COVID-19. “The global pandemic caused recession in the country, in the demand for imported goods and services, and generated a reduction in the deficit of current transactions, especially in services and revenues, with the reduction in international travel as well as profits and dividends, the latter due to the impact on commercial activities,” he said.

The figures were unveiled along with the statistics on the foreign sector for December 2020. According to the Central Bank, after six consecutive months of surpluses, current transactions were minus $5,393 billion last month, compared to $4.653 billion in December 2019.