Brazil triples current account deficit in first nine months of the year

Brazil recorded a deficit of US$ 29.583 billion in its current account in the first nine months. This figure almost triples the result of the same period last year (US$ 11.356 billion), the Central Bank informed yesterday.

The current account, one of the leading indicators of the country’s external sector, is made up of the trade balance (trade of products between Brazil and the rest of the world), services (purchased by Brazilians abroad), and income (remittances of interest, profits and dividends from Brazil to foreign countries).

According to the Central Bank, the increase in the deficit in the external accounts between January and September is due to a worsening of services (more expenses abroad, including travel) and income (increase in remittances from companies abroad).

The Central Bank expects the current Brazilian account to end this year with a deficit of US$47 billion, the worst result since 2019, when the impact was negative by US$65 billion.

On the other hand, foreign investments in Brazil totaled US$70.666 billion in the first nine months of the year, the highest level since 2011.

In September alone, Brazil received US$9.18 billion in foreign investments, almost double the US$ 4.6 billion in the same month last year.