Brazil posted a wider-than-expected current account deficit in November but the figure as a proportion of gross domestic product (GDP) continued to decrease, data from the central bank showed on Wednesday.
The current account deficit in Latin America’s largest economy totaled $1.6 billion in November. Economists polled by Reuters expected a $400 million deficit.
Brazil’s $6.7 billion trade surplus in the month, larger than the $4.7 billion one reported a year ago, was not enough to offset an increase in the factor payment and service deficits, the central bank said.
Over the last 12 months, however, the current account deficit continued to decrease to the equivalent of 1.56% of GDP, down from 1.59% in the previous month and 2.59% in November 2022.
Foreign direct investment for the month reached $7.8 billion, the central bank said, against the $3.95 billion forecast in a Reuters poll.
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