The deficit in Brazil’s current transactions reached $2.164 billion in November, as per figures released today (Dec. 20) by the Central Bank. The result is below the value reported for November 2018, when the deficit stood at $3.052 billion.
These transactions consists of goods and services bought and sold, as well as the transfer of revenues from Brazil to other countries. From January to November, the gap was reported at $45.047 billion, against $35.424 billion in the same time span last year.
Foreign investment
In November, the negative result for foreign accounts was covered by direct investment. When the country posts a negative balance in current transactions, it needs to cover the deficit with investment or loans overseas.
The best way to do that is through direct investment, as funds are sent to the productive sector. Last month, these investments totaled $6.985 billion against $9.080 billion in the same month in 2018. From January to November, direct investments added up to $69.111 billion, against $69.869 billion in the same period last year.
