The Brazilian Central Bank on Tuesday posted 2016 figures for overseas accounts, showing the best performance since 2007. Brazil, last year, registered a current account deficit of $23.5 billion, less than half the $58.9 billion deficit registered in 2015. The 2016 deficit was equal to just 1.3 percent of gross domestic product, the best result since 2007, when the country posted a small current account surplus. The big decline in the current account deficit last year came partly from lower profit and dividend remittances by multinational companies and partly from a rollback in overseas travel spending by Brazilians. But the biggest factor was Brazil’s huge $45 billion trade surplus, up sharply from just $17.7 billion in 2015. Investments also provided a positive note. Foreign direct investment in Brazil rose to $78.9 billion in 2016 from $74.5 billion the previous year. For 2017, economists are predicting a rise in the current account deficit as imports build up on the heels of an expected economic recovery. Overseas travel spending and profit remittances may also rise.
Link to Central Bank release
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