Foreign direct investment of $5.433 billion fails to cover current account deficit of $7 billion in January

Brazil started 2012 with a record January current account deficit of $7.086 billion. That is more than the Central Bank forecast of $6.7 billion, and well above the January 2011 deficit of $5.584 billion. In fact, it is the highest current account deficit for the month since the Central Bank began keeping records.

The January current account deficit consisted of a trade deficit of $1.292 billion and the so-called services account (international travel, transportation, equipment rentals) with a deficit of $3.39 billion.

The revenues account (remittances of profits and dividends, interest payments and salaries) had a deficit of $2.575 billion.

Foreign direct investment, at $5.433 billion, was not sufficient to cover the deficits.