UPDATE 1-Brazil reports lower than expected current account deficit in February

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details, context) BRASILIA, March 27 (Reuters) - Brazil posted a lower-than-expected current account deficit in February, showed central bank data on Monday, mainly due to a decrease in factor payments. The country's current account deficit reached $2.8 billion in February, lower than the $5 billion shortfall forecast in a Reuters poll of economists. The deficit in factor payments fell 33.5% compared to the same month last year, totaling $3.4 billion, due to a decline in profits and dividends sent abroad. The deficit in the services account decreased by 27.6% compared to February 2022, totaling $2 billion. Meanwhile, the positive balance of the trade balance was $2.5 billion, compared to $3.6 billion a year ago.


Foreign direct investment totaled $6.5 billion in February, missing the Reuters poll estimate of $10.2 billion. Central bank data also showed that investors made a net portfolio investment of $553 million in Brazilian markets in February, down from $1.8 billion in the same month last year. Inflows in stocks and bonds reached $236 million and $317, respectively.
(Reporting by Marcela Ayres, Editing by Louise Heavens and Steven Grattan)

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