25-05-2012 14:10 Brazil
Brazil's current account deficit rose sharply in April
BRASILIA, (NNN-MERCOPRESS) - Brazil's monthly current account deficit rose sharply in April as the country's trade surplus faded and profit remittances and foreign travel costs increased, the Brazilian Central Bank said.
Brazil posted an April current account deficit of US$5.4 billion, up from US$3.3 billion in March. The 12-month current account deficit also advanced, this time to US$51.6 billion from US$49.8 billion as of March.
The 12-month current account deficit as of April was equal to 2.04% of GDP, the central bank said, up from 2.0% as of March. The April figure was still well below the 3.0% level considered worrisome by most Brazilian economists.
The current account deficit rose in April on the heels of a decline in the country's trade position, with April showing a trade surplus of only US$881 million, down sharply from US$2.02 billion in March. Brazilian imports have continued to rise in recent months on a wave of consumer buying.
Similarly, well-heeled Brazilians continued their foreign travels in April, with net outflows from travel accounts reaching US$1.25 billion, up from US$997 million in March. The spending spree on imports and foreign travel comes as job opportunities and incomes continue to rise, according to economists.
Multinational companies also contributed to the rise in the current account deficit in April, sending US$2.42 billion out of the country in profit and dividend remittances. That figure was up from US$2.0 billion in March.
But foreign direct investment also continued heavy in April, reaching a net inflow of US$4.67 billion for a net 12-month inflow of US$63.2 billion, which more than covers the current account deficit.
Net foreign direct investment in March was US$5.9 billion for a 12-month total of US$64.1 billion dollars.