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23/08/2017 - 17:55hs
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Brazil’s current account with a deficit after four months

The country registered a current account deficit of USD 3.4 billion in July. However, foreign direct investment increased to USD 4 billion in the month.



Brasília – After four consecutive months of positive results, Brazil’s current account registered a deficit again in July. The Brazilian Central Bank (BC) reported this Wednesday (23) that the current transfers’ deficit was of USD 3.404 billion. From January to July, the deficit stood at USD 2.696 billion, well below the one registered in the same period of 2016, which was USD 12.438 billion.

In June, the trade balance aided in narrowing the deficit with a surplus of USD 3.049 billion. On the other hand, the services accounts (international travelling, transportation, equipment rent, insurances, among others) registered a deficit of USD 3.007 billion.

Expenditures by Brazilians abroad totaled USD 1.88 billion in July, up 38% over the same month of last year. From January to July, the amount reached USD 10.68, up 35% over the same period of 2016.

Whereas, spending by foreigners in Brazil totaled USD 440 million in July, down 5.58% in comparison to the same month of last year. Year-to-date, it reached USD 3.4 billion, down 3.4% over 2016’s first seven months.

The primary income account (profit and dividends, interest rates payments and wages) registered a deficit of USD 6.597 billion. The secondary income account (revenues generated in an economy and transferred to another, such as donations and dollar remittances, without a compensation in the form of services or assets) registered a surplus of USD 144 million.

Investments

Foreign direct investment (FDI) in the country totaled USD 4.093 billion in July, more than enough to cover the current account deficit. Year-to-date, the FDI flow reached USD 40.364 billion, up 18% over 2016’s first seven months.

The country’s foreign exchange reserves reached USD 381 billion at the end of July, against USD 378 billion in June. The total accounts for 31 months of imports.

*Translated by Sérgio Kakitani

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