Matthew Malinwoski – Bloomberg, 12/19/2014
Brazil’s current account gap in November was wider than economists forecast, as the trade deficit also widened.
The deficit in the current account, the broadest measure of trade in goods and services, in November widened to $9.3 billion from $8.1 billion a month earlier, the central bank said in a report distributed today in Brasilia. That was the biggest deficit since January and wider than predicted by 27 economists surveyed by Bloomberg, whose median estimate was for an $8.5 billion gap. Foreign direct investment in the same period fell to $4.6 billion from $5 billion in October.
Brazil’s current account has deteriorated as lower commodity prices and slower growth fromChina to Argentina undermine the trade balance. While foreign direct investment is expected to remain above $60 billion for the fifth straight year in 2015, inflows are no longer sufficient to cover the account gap. Still, central bank President Alexandre Tombini said this week that faster global growth and a weaker real will create a more favorable outlook for exports next year.