BRASILIA: Brazil's trailing 12-month current account deficit climbed to its highest in more than a decade in November, highlighting the erosion in the country's external accounts as dwindling commodity prices hurt its trade balance.
In the 12 months through November, Brazil's current account deficit was equivalent to 4.05 percent of its gross domestic product, the highest since December of 2001. The country's current account gap was $9.333 billion in November, surpassing market forecasts for a deficit of $8.6 billion, according to central bank data released on Friday.
The central bank also revealed its forecasts for the current account gap and foreign direct investment in 2015 at $83.5 billion and $65 billion, respectively. For this year the central bank expects the current account deficit to reach $86.2 billion - its widest year-end figure since the statistical series started in 1947.
A drop in the price of key Brazilian exports like iron ore and soy have dragged down export income while a sharp depreciation of the local currency has increased the cost of imports.
Brazil is expected to post its first annual trade deficit in more than a decade this year.
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