BRASILIA: Brazil posted a current account deficit of $6.5 billion in November, the largest for the month since 2014, the central bank said on Wednesday, as a result of worsening trade figures.

The deficit was slightly higher than the $6.3 billion forecast in a Reuters poll of economists. In the 12 months to November, the deficit reached 1.9% of gross domestic product, the highest since September 2020.

On the capital flows side, foreign direct investment in November came in at $4.6 billion, the central bank said, more than the $3.8 billion forecast.

In November, the trade balance deficit reached $2.5 billion, from a surplus of $1.7 billion in the same month last year, as imports increased 45.6% year-on-year while exports rose 17.1%.

From January to November, the current account deficit was $22.4 billion, up from a deficit of $16 billion for the same period in 2020.

Earlier this year, the central bank estimated there would be a current account surplus in 2021, which would be the country's first since 2007. However, trade balance data led to a complete reversal of these expectations.

In its recent inflation report, the central bank lowered its 2021 trade surplus forecast to $35 billion, versus $70 billion forecast in March, and revised its 2021 current account outlook to a $30 billion deficit from a $2 billion surplus.

Based on partial data already in for December, the central bank said it expects a current account deficit of $6.8 billion and FDI inflows of $3 billion in the month.

Investors plowed a net $989 million into Brazilian stocks and bonds in November. Stocks saw a $155 million inflow and debt securities attracted $833 million, the central bank said.