Brazilian market analysts' projection for the ratio between net public debt and Gross Domestic Product (GDP), which is the sum of all goods and services produced in the country, was revised up to 41.30% from 41.20%, according to the Focus bulletin, published every Monday by the Brazilian Central Bank, based on a survey of the leading economic indicators conducted among market analysts.
The lower the debt-to-GDP ratio, the greater the confidence of investors that the country is going to meet its financial commitments. Another figure revised was that of foreign direct investment, which went up from US$ 31.30 billion to US$ 33 billion.
Last week, foreign investors received yet another incentive to investing in Brazil. Credit rating agency Fitch Ratings changed the country's grade from negative to positive.
According to the Focus bulletin, market analysts also raised the projection for the 2009 current account deficit (i.e. all operations between Brazil and foreign countries) from US$ 20 billion to US$ 22 billion.
The trade surplus (exports minus imports) was reduced from US$ 24.90 billion to US$ 24 billion. The estimated exchange rate for the end of 2008 remains at 1.70 Brazilian real (US$ 1.04 at current rates).
Balance of Trade
The Brazilian balance of trade (exports minus imports) posted a surplus of US$ 4.077 billion in the month of May, after 20 business days. Exports totaled US$ 19.306 billion and imports, US$ 15.229 billion. The figures were supplied by the Brazilian Ministry of Development, Industry and Foreign Trade
In the last week of May, exports were equivalent to US$ 4.456 billion and imports, to US$ 3.339 billion, resulting in a trade surplus of US$ 1.117 billion.
In the accumulated result for the year so far, the trade surplus stands at US$ 8.655 billion, with foreign sales of US$ 72.054 billion and imports of US$ 63.399 billion. A trade surplus of US$ 16.758 billion was recorded during the same period last year.
Show Comments (5)