Brazil’s external accounts closed out May with a positive balance of $662 million, as per figures released today (Jun 24) by the Central Bank. In the same month last year, the surplus was reported at $900 million.
For January to May, however, $7.576 billion deficit was reported, compared to $8.162 billion in the same period in 2018.
Under external account are purchases and sales of goods (balance of trade), and services, plus income transfers with other countries.
When the country faces a negative balance in its external accounts, it must cover the deficit with investment or loans overseas.
The negative balance for external accounts from January to May was totally covered by direct investment in the country. In the first five years of the country, it reached $35.137 billion. In the same period last year, the value amounted to $26.886 billion. In May, these investments added up to $7.070 billion, compared to $2.994 billion in the same month in 2018.