Brazil's 12-month current account deficit narrows to two-year low
SPY•Brazil's current account deficit narrowed to 2.33% of GDP in the 12 months through September, its lowest level in two years, helped by a stronger trade surplus. September's deficit was $5.1 billion, while foreign direct investment totaled $11.3 billion.
1. Deficit reaches two-year low
Brazil's current account deficit narrowed to 2.33% of GDP in the 12 months through September, its lowest level in two years, central bank data showed. In September alone, the deficit was $5.1 billion, compared with economists' forecast of $5.0 billion.
2. Trade and investment flows
A growing trade surplus fueled by soaring oil prices, as Brazil is a net oil exporter, more than offset widening deficits in services and factor payments, which also deteriorated in September. Foreign direct investment totaled $11.3 billion in September, far above the $6.5 billion forecast. In the 12 months through September, FDI rose to 3.43% of GDP from 3.39% the previous month, remaining above the current account deficit.
