Brazil’s account deficit falls, indicating stabilisation
Brazil’s current account deficit narrowed to $535 million (£323.9 million) in June from $2.78 billion the year before, reflecting improving trade and investment conditions.
In news which may reassure Brazilian property investors, the country’s central bank reported that the figure was also down from the £1.74 million balance in May.
The deficit represented 1.37 per cent of gross domestic product (GDP) in the 12 months ending June this year, compared to 1.5 per cent of GDP a month earlier.
"As the level of activity improves domestically, some overseas service payments could increase, but the deficit should remain low throughout the remainder of the year," said central bank statistics coordinator Altamir Lopes, according to Dow Jones newswires.
Foreign direct investment amounted to $1.45 billion in June, down from May’s record high figure of $2.48 billion.
Last week, the central bank cut the country’s basic annual interest rate to a record low of 8.75 per cent, which could be good news for Brazilian property investors and owners.
