Brazil’s 12-month current account deficit continued to shrink in January on strong trade performance and a weak Brazilian Real, the Central Bank said Tuesday. The modest January deficit of $4.8 billion helped pull down the 12-month deficit to $51.6 billion from $58.9 billion as of December. January performance was aided by a strong monthly trade surplus of $923 million. Traditionally, January produces trade deficits on weak commodities exports. A weak Brazilian Real has led to diminishing imports and a sharp decline in overseas spending by Brazilian tourists. Foreign direct investment continued to cover the current account deficit with money left over. January FDI was $5.5 billion.
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