Brazil posts $3.1 billion present account deficit in November

BRASILIA (Reuters) – Brazil recorded a present account deficit of $3.1 billion in November, the central financial institution stated on Monday, widening the 12-month shortfall primarily as a consequence of a weaker commerce surplus.

The month-to-month deficit was narrower than the $3.3 billion forecast in a Reuters ballot of economists, however marked a big deterioration from the $3 million deficit registered a yr earlier.

Over the 12-month interval, the present account deficit rose to 2.37% of gross home product (GDP), doubling the extent seen a yr in the past.

The widening deficit displays Brazil’s stronger-than-expected financial efficiency, which has boosted imports and decreased the commerce surplus.

Finance Minister Fernando Haddad has estimated this yr’s financial development at 3.5%, sharp contrasting with the 1.6% enlargement projected by personal economists in the beginning of the yr.

The sturdy financial exercise has additionally pushed up internet spending on providers and widened the deficit in issue funds, contributing to the bigger present account hole.

In November, the commerce surplus reached $6.3 billion, a 20.9% drop from a yr earlier. The deficit in providers rose 24.6% to $4.7 billion, whereas the issue funds deficit elevated 13.8% to $5 billion.

Overseas direct funding (FDI) for the month totaled $7 billion, exceeding the $6.5 billion forecast within the Reuters ballot. Over the 12-month interval, FDI stands at 3.0% of GDP.