Brazil current account deficit shrinks to 0.84pc of GDP, narrowest in 13 years

BRASILIA: Brazil's balance of payments position with the world improved in April, central bank figures showed on Wednesday, as the first current account surplus in five months shrank the rolling 12-month deficit to its smallest in 13 years.

The country also attracted a combined $6.3 billion of foreign direct investment and portfolio inflows into its domestic stock and bond markets in the month, the figures showed.

Brazil posted a $5.7 billion current account surplus in April, the central bank said, less than the $6.2 billion median forecast in a Reuters poll of economists.

That was largely thanks to a record goods trade surplus of $9.1 billion. Exports surged 50.7% from the same month last year, outstripping a 36.6% jump in imports.

In the 12 months to April, the current account deficit totaled $12.4 billion, or 0.84% of GDP, the smallest since March 2008. The deficit a year earlier stood at almost 4% of GDP.

Foreign direct investment in April totaled $3.5 billion, the central bank said, another solid monthly inflow although less than the $5 billion forecast in the Reuters poll.

Based on partial data already in for May, the central bank said it expects a current account surplus of $3.6 billion and FDI inflows of $2.3 billion in the month.

Investors plowed a net $2.8 billion into Brazilian stocks and bonds in April. Stocks saw a $1.6 billion inflow and debt securities attracted a net $1.2 billion, the central bank said.

Net portfolio inflows in the first four months of the year were $10.5 billion, compared with a $31.7 billion net outflow in the same period last year.