Brazil Trade Surplus Off, but So Are Remittances

Brazil's current-account remains "well anchored" and will continue "to hover at a stable and moderate 2.0%-2.2% of GDP," according to Goldman Sachs analysts in a research note. That's the good news from the central bank's release of August current account data, showing a monthly deficit of "only" $2.6 billion. The bad news is that Brazil will remain in deficit because of a weakening trade surplus. Meanwhile, profit and dividend remittances will also remain below year-ago levels but only because of "lower corporate profitability given the slowdown in demand and rising costs."