* Brazil posts current account gap of $9.018 billion in July
* Foreign direct investment falls to $5.212 billion
* FDI unlikely to cover large current account gap this year
BRASILIA, Aug 23 Brazil's current account
deficit more than doubled in July from a year ago, central bank
data showed on Friday, with the country increasingly unlikely to
cover that gap this year with slackening direct investment from
Brazil posted a current account gap of $9.018
billion in July, above an expected deficit of $8.4 billion,
according to the median forecast of 17 analysts in a Reuters
survey. The forecasts for the projected deficit ranged from $7.4
billion to $9.4 billion.
In July 2012 Brazil had a deficit of $3.746 billion. The
current account is a country's broadest measure of foreign
transactions encompassing trade, profit remittances, interest
payments and other items.
In the first seven months of this year, the country has
accumulated a current account gap of $52.472 billion, nearly
double the $28.99 billion posted in the same period a year ago.
Even so, foreign direct investment during the same period
this year totaled $35.239 billion, lagging the $38.169 billion
of FDI in same period last year.
Unless there is a surge of FDI, it seems increasingly
improbable that direct investment from abroad will cover the
current account gap. FDI falls into the capital account of the
balance of payments and has in past years offset current account
The widening current account helps explain the Brazilian
currency's sharp depreciation over the last few months, which
has been exacerbated by expectations of a scale back in U.S.
monetary stimulus that triggered an exodus of capital from
For July, FDI in the country fell to $5.212
billion in July from $7.17 billion in June.
In the 12 months through July, the current account deficit
was equivalent to 3.39 percent of gross domestic product, up
from 3.17 percent in May.