Brazil's Trade Balance Likely To Weaken Amid Limited Export Growth

• It is expected that Brazil's current account deficit will widen modestly over the coming quarters, as imports rise in line with a pick up in consumption and investment.
• Export growth will be constrained by lower average commodity prices, fading benefits from Chinese trade diversion and limited progress on advancing new trade deals.
• While capital inflows will likely cover external financing needs, financing shortfalls over recent months highlight downside risks to this view.

(Source: Fitch)