São Paulo/Brasilia (Reuters) -Brazil had in February a direct foreign investment entry well above the expected by analysts, while the country’s current transactions deficit recorded discharge, the Central Bank said on Wednesday.
Direct investments in the country (IDP) reached $ 9.3 billion last month, over $ 5.5 billion projected in Reuters survey and $ 5.332 billion observed in February last year.
The indicator – important resource flow flag intended for long -term investments, as well as helping to compensate for the country’s current account – added the equivalent of 3.38% of Gross Domestic Product (GDP) in 12 months, from 3.18% in the previous month and 2.89% in February 2024.
Last month, a negative balance was observed in current transactions of US $ 8.758 billion, compared to US $ 3.903 billion in the same period of the previous year, with the deficit accumulated in 12 months totaling the equivalent of 3.28% of Gross Domestic Product (GDP).
The result came slightly better than the market expectation, according to Reuters survey with experts, which pointed to a negative balance of $ 9.104 billion in February.
Even with the strong result of direct investment so far, XP economist Luiza Pinese has assessed that the current account deficit can exceed IDP by 2025, under import data pressure more persistent than expected.
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“However, our base scenario does not foresee deterioration of the checking account in 2026. In addition, Brazil continues to benefit from a solid stock of international reserves and low debt in foreign currency,” he said in a report.
She added that the payroll deficit observed in February should be seen with caution in view of the importation of a $ 2.7 billion oil platform and a delay in agricultural exports.
Still, Pinese assessed that imports were more persistent than expected. She said she hoped this dynamic will be maintained in the first half, relieving only with the slowdown of activity and impacts of the exchange rate.
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In February, the trade balance had a negative balance of US $ 979 million, against a surplus of US $ 4.387 billion in the same month of 2024.
Already the break in the service account was US $ 3.889 billion, against negative balance of US $ 3.849 billion in February of the previous year.
The primary income bill, in turn, had a deficit of US $ 4.104 billion, before a negative balance of US $ 4.630 billion in the same period last year.
