Brazil posts biggest current account deficit for May in eight years

BRASILIA (Reuters) – Brazil posted a present account deficit of $3.5 billion in Could, the worst end result for the month in eight years, amid commerce steadiness weakening, central financial institution figures confirmed on Friday.

A robust commodities producer, Brazil has seen its exports develop, however imports have elevated at a quicker tempo, pushed by increased costs for merchandise equivalent to gasoline and fertilizers.

In Could, the commerce steadiness surplus was $3.4 billion, down 53.3% over the identical month final yr.

The issue funds deficit additionally rose by $1.4 billion within the month, whereas the companies deficit rose by $743 million, the central financial institution mentioned.

General, this was the worst present account determine for Could since 2014, when the deficit was $6.7 billion.

Then again, international direct funding in Could totaled $4.5 billion, greater than doubling from $2.2 billion a yr earlier.

Based on the central financial institution, traders made a web redemption of $3.9 billion from Brazilian markets in Could, together with $3.2 billion outflows in shares and $702 million in bonds.

In 12 months, the present account deficit reached 1.89% of gross home product, whereas international direct funding hit 3.45% of GDP, the central financial institution mentioned.

(Reporting by Marcela Ayres; Modifying by Raissa Kasolowsky and Cynthia Oserman)