Brazil current account improvement likely to continue

Brazil's current current account balance was at 4166 mn dollars, the improvement is expected to continue by market consensus expectations.

"On our forecast of -$3,125m for November, we estimate that the YTD current account balance improved from -$92.5bn to -$56.6bn (or a YTD improvement of nearly 39%)", says Societe Generale in a research note.

These gains are expected to consolidate further moving ahead. Also, the BRL weakness appear ro be beneficial for Brazil exports. Domestic growth weakness clearly helps on external front.

The current account might be heading for a substantial correction in 2015 in USD terms. BRL depreciation this year will prevent sharp improvement in current account/GDP ratio.