In June, Brazil recorded a current account deficit of 2.914 billion dollars, accumulating a negative balance of 0.91% of Gross Domestic Product (GDP) in 12 months, the Central Bank reported this Thursday.
The month's result was worse than the deficit of 1.5 billion dollars expected by analysts, according to a Reuters survey.
Last month, net direct investment in the country totaled US$2.190 billion, well below the flow expected by analysts of US$5.750 billion.
At the end of the first half of the year, the current account deficit reached 10.553 billion dollars, an increase of 32% over the same period last year.
Last month, the BC predicted that the deficit in current transactions will be 19.3 billion dollars in 2019, well below the level of 30.8 billion dollars seen before, in the wake of the lower growth outlook for the Brazilian economy.
With weaker activity, the tendency is for less appetite for imports, resulting in a higher-than-expected surplus for the trade balance, a major factor in the performance of current transactions.
In June, the balance of trade exchanges once again set the tone for the result of current transactions, remaining positive at 4.297 billion dollars, a drop of 22% compared to the same month last year.
Net spending by Brazilians on international travel totaled 1.150 billion dollars in June. Remittances of profits and dividends totaled 2.929 billion dollars.
Post: Marina Carvejani
Author: Isabel Versian
Source: Agricultural News
