Brazil has the largest deficit in 7 years in the same period in the year since the November crisis

Brazil has the largest deficit in 7 years in the same period in the year since the November crisis ...

BRASILIA, Dec 22 - Brazil has posted a real financial deficit of $16.5 billion in November, the largest for the month since 2014, the central bank said on Wednesday.

The deficit was about $16.3 billion higher than forecast by Reuters economists. The deficit reached 1.9% of the PIB of the year to November, the highest since September 2020.

The central bank said, The foreign direct investment in November rose at 4.6 milliard dollars, more than the $3.6 milliard forecast.

The trade balance deficit reached five billion dollars, compared with an average of seven million dollars last year, when imports increased 45.6% year-on-year and exports rose 17.1%.

Between January and November, the current account deficit was 2.2.4 Mrd. Dollar, up from 1.6 Mrd. USD for the same period in 2020.

The central bank predicted that the current account will be more than double its value in 2021 - a decade earlier than in 2007. However, the trade balance resulted in a totally reverse of the expectations.

In its recent inflation report, the central bank reduced its trade surplus forecast to $35 billion versus the estimate of 70 billion in March, and revised its financial outlook to a 30-plus billion deficit.

The central bank says it expects a deficit of 6.8 billion dollars and an average inflow of $3 billion in the month.

In November, investors tallied a net of $989 million to Brazilian stocks and bonds. Stocks saw an inflow of a million dollars and a debt-told attracted 833 million dollars, said the central bank.

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