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Brazil Posts $1.375 Bln Current Account Deficit in September

Brazil recorded a current account deficit of $1.375 billion in September, a significant improvement from the previous year, driven by a robust trade surplus.

The figure closely matched the expected deficit of $1.4 billion of economists polled by Reuters. In September 2022, the deficit had reached $6.940 billion.

Meanwhile, foreign direct investment (FDI) in September fell short of expectations at $3.752 billion, below the polled estimate of $4.9 billion.

The Brazilian trade balance surplus surged to $7.212 billion in September, a 3.5-fold increase compared to the same period last year. This was largely attributed to a 23.8% decline in imports, while exports only decreased by 5.2%, according to the central bank.

Over the 12-month period, the current account deficit decreased to $39.832 billion, equivalent to 1.92% of GDP, down from 2.21% in August.

The central bank also noted that portfolio investors registered a net inflow of $1.835 billion into Brazilian markets in September, with net inflows of $2.311 billion into bonds and outflows of $477 million from stocks and investment funds.

Source: Yahoo!Finance