Brazil managed to cut its current account deficit nearly in half in 2015, the Central Bank said Tuesday, but only because of a stiff currency depreciation and a recessionary economy. Brazil’s 2015 current account deficit amounted to $58.9 billion, down sharply from $104.2 billion in 2014. Overseas travel spending by Brazilians fell 32% on the heels of a 33% depreciation of the Brazilian Real against the U.S. dollar. Imports also declined sharply, partly on the strong dollar and partly due to a persistent recession, which slashed demand for everything from capital goods to toys. That meant Brazil was able to convert a 2014 foreign trade deficit of $3.9 billion into a 2015 surplus of $19.7 billion. Profit and divident remittances in 2015 were stable against the previous year. Foreign direct investment declined 22% but was still strong in 2015 at $75.1 billion, the Central Bank said.
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