Brazil posted a current account deficit of US$1,6 billion in November, higher than expected.
The accumulated deficit over 12 months also showed a further decrease.
(Reuters)- Brazil posted a current account deficit of $1,553 billion in November, higher than economists had expected, but the negative balance was more than offset by the inflow of direct investment into the country, which also exceeded expectations, according to figures released by the Central Bank on Wednesday.
The accumulated deficit over 12 months also showed a further decrease, totaling the equivalent of 1,56% of Gross Domestic Product in November, down from 1,59% in October.
A Reuters poll of experts had predicted a negative balance of $400 million in November.
In November 2022, the country's external accounts showed a deficit of US$1,674 billion. In this year-on-year comparison, the trade surplus increased by US$2 billion, reflecting a drop in imports, while the deficit in the contracting of services increased by US$921 million, to US$3,6 billion.
In November, direct investments in the country reached $7,8 billion, well above the $3,950 billion projected in the Reuters survey and the highest monthly flow since September 2022 ($9,628 billion).
Meanwhile, portfolio investments (stocks, investment funds and debt securities) in the domestic market totaled net inflows of $2,4 billion in November, bringing the total to $13,6 billion over 12 months.
In the year to date, direct investments total US$52,716 billion, and over the last 12 months, they have reached US$57,7 billion. Economists expect these flows to total US$59 billion in 2023, according to the Central Bank's Focus survey.