Brazil Narrows Current Account Deficit to 1.32% of GDP
Brazil’s current account deficit decreased to $28.6 billion (1.32% of GDP) in 2023 from the prior year’s $48.3 billion (2.47% of GDP), as reported by the Central Bank.
The current account shortfall in December was reported at $5.8 billion, an improvement over the $7.5 billion recorded in the same month a year earlier.
This deficit, encompassing trade balances, services, income, and remittances from Brazilians abroad, signifies a positive shift towards enhancing Brazil’s currency and economic resilience.
To offset this financial gap, Brazil leans on foreign investments or loans, with a preference for direct foreign investments (FDI).
In 2023, FDI was reported at $62 billion, or 2.85% of GDP, down from 3.82% in 2022.
December’s figures showed a slight reduction in net outflows to $389 million, closely mirroring the $479 million from December 2022.
Overseas investments decreased to $28.3 billion from $33.4 billion in 2022, indicating a shift in investment dynamics.
The close of the year saw foreign investments totaling $1.5 billion, a decline from $2.7 billion at the end of the previous year.
Investments within the domestic market saw an uptick, reaching $8.6 billion last year, surpassing the net inflow of $7.7 billion in 2022.
Brazil’s international reserves witnessed growth, reaching $355 billion in December 2023, an increase of $6.6 billion from the previous month.
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Brazil — Live Market Board
-0.43%
166,841.38
-0.43%
70,819.80
+0.91%
10,416.62
-1.98%
2,848,945
—
2,510.87
+0.18%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 166,841.38 | -0.43% | +8.64% | 167,563.47 | 168,994 | 166,249 | — |
| USD/BRL | 5.49 | +0.49% | +1.65% | 5.46 | 5.49 | 5.42 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 46.60 | -1.10% | +51.05% | 47.12 | 48.04 | 46.38 | 26,273,300 |
| VALE3 | 62.90 | +0.88% | -4.44% | 62.35 | 63.16 | 62.15 | 12,668,900 |
| ITUB4 | 39.79 | +0.20% | +2.10% | 39.71 | 40.04 | 39.33 | 15,570,000 |
| BBDC4 | 13.89 | -1.21% | -26.13% | 14.06 | 14.15 | 13.73 | 42,347,000 |
| BBAS3 | 16.42 | -0.42% | -27.42% | 16.49 | 16.71 | 16.34 | 17,592,200 |
| B3SA3 | 14.17 | -0.91% | +7.27% | 14.30 | 14.44 | 14.04 | 15,234,000 |
| ABEV3 | 15.43 | +1.18% | +17.07% | 15.25 | 15.45 | 15.13 | 25,611,400 |
| WEGE3 | 47.92 | -4.26% | +10.09% | 50.05 | 49.93 | 47.65 | 8,388,900 |
| PRIO3 | 62.20 | +0.10% | +64.53% | 62.14 | 64.44 | 61.93 | 6,483,700 |
| SUZB3 | 51.84 | -0.97% | +5.89% | 52.35 | 52.44 | 51.15 | 3,942,100 |
| RENT3 | 29.37 | -0.31% | -29.30% | 29.46 | 29.71 | 28.91 | 7,003,100 |
| AZZA3 | 14.11 | +1.00% | -51.48% | 13.97 | 14.62 | 13.92 | 2,093,400 |
| CSNA3 | 4.04 | -0.98% | -53.73% | 4.08 | 4.29 | 4.02 | 12,753,200 |
| GGBR4 | 24.02 | -3.46% | +25.72% | 24.88 | 25.14 | 23.98 | 11,631,200 |
| ENEV3 | 26.27 | +0.00% | +38.99% | 26.27 | 26.76 | 26.01 | 5,809,900 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief