BRASILIA (Reuters) -Brazil’s current account deficit reached $9.77 billion in September, wider than the $7.75 billion shortfall forecast by economists in a Reuters poll, central bank figures released on Friday showed.
Foreign direct investment (FDI) for the month came in at $10.67 billion, beating the $6.5 billion expected in the poll and marking the highest level for the month in the historical series.
Over the past 12 months, FDI amounted to 3.47% of gross domestic product (GDP), not enough to cover the current account deficit, which stood at 3.61% of GDP.
Brazil’s widening external gap has been driven mainly by a shrinking trade surplus: imports have been growing faster than exports as Latin America’s largest economy continues to show resilience despite high borrowing costs.
In September, the trade surplus narrowed by $2.2 billion from the same month a year earlier, said the central bank.
Also contributing to the larger current account deficit, the deficit in factor payments rose by $946 million, only partially offset by a $640 million decline in the services deficit.
According to the central bank, portfolio investments in the domestic market posted net inflows of $4.43 billion in September, a 49.6% increase from a year earlier, driven by $5 billion in net debt inflows and $572 million in net equity outflows.
(Reporting by Marcela Ayres; editing by Philippa Fletcher)
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