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Brazil FDI rises, CAD narrows
July 24, 2013, 8:14 am

[Xinhua]

President Dilma Rousseff has pledged to contain expenditure to help control inflation [Xinhua]

Brazil’s Central Bank has released encouraging figures for the country’s economy, which see a shrinking of the current account deficit and an increase in foreign direct investment.

The Latin American nation narrowed its current account deficit (CAD) in June posting a $3.95 billion deficit figure, much lower than the $6.4 billion in May.

Brazil also posted a trade surplus of $2.3 billion in June.

Most significantly, foreign direct investment (FDI) in the country increased to $7.2 billion in the month, from $3.9 billion in May.

The figures from the the central bank resulted in the Brazilian real closing stronger against the dollar and the Bovespa stock index gaining 0.5 per cent on Tuesday.

President Dilma Rousseff has pledged to contain expenditure to help control inflation that has exceeded the upper limit of the central bank’s target range twice this year.

The government is reducing expenditures by about $4.5 billion dollars and lowering this year’s economic growth forecast to three per cent from 3.5 per cent, Finance Minister Guido Mantega said on Monday.

Source: Agencies

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