{"id":264829,"date":"2019-12-20T14:18:09","date_gmt":"2019-12-20T17:18:09","guid":{"rendered":"https:\/\/anba.com.br\/?p=264829"},"modified":"2019-12-20T18:50:14","modified_gmt":"2019-12-20T21:50:14","slug":"falling-exports-drives-up-current-account-deficit-in-brazil","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/falling-exports-drives-up-current-account-deficit-in-brazil\/","title":{"rendered":"Drop in exports drives up current account deficit in Brazil"},"content":{"rendered":"

Bras\u00edlia \u2013 The current account deficit reached USD 2.164 billion in November, the Central Bank (BC<\/a>) reported this Friday (20). The result is lower than November 2018, when it posted USD 3 billion. Year-to-date through November, the deficit reached USD 45.047 billion from USD 35.424 billion a year ago.<\/p>\n

\u201cYear-to-date, current account deficit was up by USD 9.6 billion, which is fully explained by the decline in the trade surplus from USD 47.1 billion [from January to November 2018] to USD 34.6 billion [year-to-date through November]. In other words, if you compare, this [declining] trade [balance] result was even more intense than the total reduction in current transactions,\u201d said Central Bank statistics department chief Fernando Rocha.<\/p>\n

Rocha explained that the trade balance is lower due to declining exports because of the crisis in Argentina and the reduced soy demand from the Chinese. \u201cYear-to-date, exports dropped by 6.3%,\u201d he said.<\/p>\n

Trade surplus reached USD 2.777 billion in November and USD 34.648 billion year-to-date through November from USD 3.578 billion and USD 47.070 billion a year ago, respectively.<\/p>\n

The primary income account (profits and dividends, interest and wage payments), which is also part of current transactions, ran a deficit of USD 2.916 billion in November and USD 49.290 billion year-to-date through November.<\/p>\n

The secondary income account (income generated in one economy and distributed to another, like donations and dollar remittances with no corresponding services or goods) ran a surplus of USD 40 million in November and USD 1.180 billion year-to-date.<\/p>\n

The services account (international travels, transport, investment rent, and others) posted a deficit of USD 2.065 billion in November and USD 31.585 billion year-to-date through last month.<\/p>\n

For December, BC expects the current deficit to reach USD 6 billion. Rocha forecasts that the current deficit will slightly increase this year and the next. That\u2019s because the larger economic growth expected for 2020 increases the demand for imported goods and services. Moreover, foreign companies\u2019 subsidiaries in Brazil post better results, thus increasing remittances of profits and dividends abroad. On the other hand, Rocha added that the demand for services from Brazil and Brazil\u2019s revenues from profits and dividends are increasing.<\/p>\n

Travels<\/strong><\/p>\n

\"\"<\/a>
Brazilians are spending less with international travels<\/figcaption><\/figure>\n

With the dollar on the rise, spending by Brazilians during international trips decreased in November. Last month, spending reached USD 1.247 billion from USD 1.385 billion year-on-year.<\/p>\n

Year-to-date through November, this spending during international trips were also down. Expenditure reached USD 16.097 billion from USD 16.863 billion a year ago.<\/p>\n

The decline was driven by the higher dollar at an average of BRL 4.16 in November. \u201cThe devaluing exchange rate makes tourists\u2019 spending more expensive,\u201d said Rocha.<\/p>\n

Expenditure of foreign travelers in Brazil reached USD 432 million last month and USD 5.403 billion year-to-date through November. With these results, travel deficit stood at USD 816 million in November and USD 10.693 billion year-to-date through November.<\/p>\n

Month-do-date through the 18th<\/sup>, foreign travelers\u2019 spending in Brazil reached USD 294 million, while Brazilians\u2019 spending abroad stood at USD 890 million generating a travel deficit of USD 596 million.<\/p>\n

Investment<\/strong><\/p>\n

\"\"<\/a>
Real depreciated against dollar<\/figcaption><\/figure>\n

In November, current deficit was entirely made up for Foreign Direct Investment (FDI). Last month, flow reached USD 6.985 billion from USD 9.080 billion a year ago. Year-to-date through November, investment reached USD 69.111 billion from USD 69.869 billion a year ago.<\/p>\n

BC estimates that FDI in December will be USD 11 billion. Month-to-date through the 18th<\/sup> , this investment reached USD 8.373 billion.<\/p>\n

Translated by Guilherme Miranda<\/strong><\/p>\n

Nelson Almeida\/AFP<\/div>\n
Mateus Bonomi\/Agif\/AFP<\/div>\n
Carol Smiljan\/NurPhoto\/AFP<\/div>\n","protected":false},"excerpt":{"rendered":"

Negative current balance stood at USD 2.1 billion in November and USD 45 billion year-to-date. But foreign direct investment made up for it.<\/p>\n","protected":false},"author":2315,"featured_media":264820,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[27115,1803,2227,7536,2859,4641,9561,3901,10014,4849,6780],"class_list":{"0":"post-264829","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-cambio-en","9":"tag-central-bank","10":"tag-current-account","11":"tag-current-transactions","12":"tag-exchange-rate","13":"tag-exportacao-en","14":"tag-exports-en","15":"tag-fdi","16":"tag-investment-en","17":"tag-trade-deficit","18":"tag-travels"},"wps_subtitle":"Negative current balance stood at USD 2.1 billion in November and USD 45 billion year-to-date. But foreign direct investment made up for it.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/264829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2315"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=264829"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/264829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/264820"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=264829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=264829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=264829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}