Brazil spent more abroad than it received in February

RIO DE JANEIRO, BRAZIL – Brazil registered a current account deficit of US$ 2.326 billion in February, as reported Friday, March 26th, by the Central Bank (BC). The monetary authority had estimated a deficit of US$ 2.3 billion. In the same month of 2020, the current account balance was negative by US$ 4.662 billion.

In the 12-month period, the difference between what the country spent and received in international transactions related to trade, income and unilateral transfers reached a negative balance of US$ 6.888 billion, equivalent to 0.48% of the Gross Domestic Product (GDP). In January, the deficit was 0.65% of GDP.

Foreign Direct Investment (IDP)

Foreign direct investment in Brazil totaled US$9.007 billion in February. The BC had previously estimated inflows of US$ 6.5 billion. In February of last year, on the other hand, DDI had totaled US$ 2.580 billion.

The IDP includes the resources intended for participation in the equity and direct loans granted by the headquarters of multinational companies to their subsidiaries in the country and vice-versa. The return on Brazilian investment abroad is also part of these statistics.

In the 12 month period ending in February, the IDP totaled US$ 39.778 billion, or 2.75% of Gross Domestic Product (GDP), against 2.32% of GDP seen through January. The amount is more than enough to cover the current account deficit of 0.48% in the 12 months.

Source: Valor

More: Brazil news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error