Brasília – Brazil started the year with a current account deficit of US$ 7.086 billion, according to figures disclosed on Thursday (23) by the Central Bank of Brazil. The result for January is larger than that forecasted by the Central Bank for the month, US$ 6.7 billion. In the same period in 2011, the negative result had totalled US$ 5.584 billion. The deficit in current account transactions last month is the greatest yet recorded by the Central Bank.
The current account includes the purchase and sale of products and services. The calculation includes exports and imports – the balance of trade -, which had a deficit of US$ 1.292 billion in January. The service balance (international travels, transport, rent of equipment and others) was also negative, US$ 3.397 billion.
In the income account (transfer of profit and dividends, payment of interest and wages), the result was US$ 2.575 billion. Unilateral current transactions (donations and transfer of dollars that the country makes abroad or receives from other countries, with no counterpart of services or goods) registered net inflow of US$ 178 million.
When the country has a current account deficit, i.e., spends more than its receives, it is necessary to finance this result with foreign investment or make loans abroad.
In January, foreign direct investment, for the productive economy, was not enough to cover this negative result. This investment totalled US$ 5.433 billion, above the Central Bank forecast for the month (US$ 4.5 billion). Another form of financing the deficit in current account transactions, investment in portfolio (shares and fixed income papers) reached US$ 4.932 billion.
*Translated by Mark Ament
