Foreign investment in Brazil grows in September, covers external gap

Brazil’s current account deficit grew wider than expected in September but was easily covered by foreign investments, central bank data showed on Friday. 

Brazil posted a current account deficit of $3.076 billion in September, larger than a gap of $2.487 billion in August and the $2.3 billion deficit forecast by economists for the month, central bank data showed on Friday. 

Brazil attracted $6.037 billion in foreign direct investments last month, up from $5.246 billion in August, the central bank said. 

Despite the monthly increase, the current account deficit declined as a percentage of Brazil’s gross domestic product in the 12 months through September. It was equivalent to 4.18 percent of GDP, down from 4.34 percent in the previous month. 

A weaker Brazilian real is helping exporters and curbing imports, boosting the country’s trade balance after the country recorded its first deficit in 14 years in 2014. 

Brazil’s currency dropped more than 30 percent this year to a record low of more than 4 per dollar as investors fret over a steep rise of the country’s debt.