Brazil Reaches US$ 19 Billion Deficit for the Year

Brazilian exports For January to May, the deficit in current account transactions, the balance between purchase and sales of products and services between Brazil and abroad, reached US$ 18.748 billion.

The negative result was greater than that registered in the same period in 2009 (US$ 6.602 billion). The figures were disclosed this Tuesday, June 22, by the Central Bank of Brazil (BC).

In May alone, the deficit in current account transactions reached US$ 2.020 billion, against US$ 1.770 billion registered in the same month in 2009. The result for last month was below that estimated by the Central Bank (US$ 2.7 billion).

Every time the country spends more than it receives with sales, it is necessary to finance the deficit through loans or foreign investment. From January to May, foreign direct investment (FDI), funds to be applied in companies in Brazil, totaled US$ 11.414 billion. In May alone, FDI totaled US$ 3.534 billion.

Another form of investment is turned to shares and fixed income papers. From January to May, investment in the area registered net entry (discounting exit) of US$ 19.762 billion. Last month, this value totaled US$ 3.671 billion.

ABr

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