Brazil foreign trade deficit up 391% in September over same month in 2020

RIO DE JANEIRO, BRAZIL – According to Central Bank data, this is the worst result for the month since 2019, when the balance was negative by US$3.7 billion.

In the cumulative numbers for the 12 months through September, the difference between what the country earned and spent in international transactions related to trade, income and transfers,was a deficit of US$20.7 billion, equivalent to 1.30% of gross domestic product (GDP).

In September 2020, the foreign deficit in the year-on-year comparison was equivalent to 2.09% of GDP.

As for the first 9 months of the year, the current account presented a negative balance of US$8 billion, 39.2% less than in the same period of 2020 (US$13.3 billion).

In contrast, foreign direct investment increased and reached US$4.5 billion in September, 31.2% more than in the same month last year. In the first 9 months of the year, foreign investments for productive projects in Brazil totaled US$40.7 billion, 16.4% more than in the same period of 2020.

The Central Bank forecasts a US$21 billion deficit in current transactions for 2021 and US$55 billion in direct investment.