Brazil Current-Account Deficit Remained Steady in January
RIO DE JANEIRO--Brazil's current-account deficit remained steady in January from December, as a rise in foreign direct investment offset a drop in exports.
South America's largest economy posted a current-account deficit of $4.3 billion last month, the same level as in December and less than in January 2017. The 12-month deficit narrowed to $9 billion, or 0.44% of gross domestic product, from $9.76 billion in December.
Foreign direct investment in Brazil stood at $6.5 billion in January, bringing the 12-month total to $65.3 billion, down from $70.3 billion in 2017.
Brazil's current-account deficit has been modest by historical standards, underpinned by strong growth in iron-ore production as well as rising prices for soybeans and oil.
But an unpredictable presidential election in October could spook investors and prompt capital outflows, BMI Research said in a research note Friday.
Economists project the 12-month deficit will expand to $26.6 billion by the end of 2018, according to a weekly survey published by the central bank.
Write to Paul Kiernan at email@example.com
(END) Dow Jones Newswires
February 26, 2018 09:28 ET (14:28 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.