Brazil Current Account Deficit April 2008
Source: http://brazileconomy.blogspot.com/2008/05/brazil-current-account-deficit-april.htmlPosted on Monday, May 26th, 2008 | In Brazil, Economics, Investing Lessons
Brazil posted the widest annual current account deficit in almost six years as faster economic growth spurred imports and the remittance of profits abroad. Brazil’s current account deficit, which offers us the broadest measure of trade in goods and services, increased to $14.7 billion in the 12 months through April, up from $9.54 billion in March, accoding to the latest data from the central bank. This if the widest gap since August 2002. The fastest economic growth in more than three years and a cheap dollar boosted demand for imports, which jumped almost 45 percent in the first four months of this year. Companies benefiting from the expansion are also sending more of their profits abroad to meet the financial needs of their head offices amid an international credit crunch. br /br /br /It is important to realise that Brazil has been running a current account surplus in recent years, although the IMF are currently forecasting a deficit of 0.7% GDP for 2008.br /br /a href=”http://3.bp.blogspot.com/_ngczZkrw340/SEZN2I9qbcI/AAAAAAAAF8M/CDbOrEoSp_Y/s1600-h/brazil+CA.jpg”img style=”display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;” src=”http://3.bp.blogspot.com/_ngczZkrw340/SEZN2I9qbcI/AAAAAAAAF8M/CDbOrEoSp_Y/s320/brazil+CA.jpg” border=”0″ alt=”"id=”BLOGGER_PHOTO_ID_5207935611614948802″ //abr /br /Record inflows of foreign direct investments have covered the gap, easing concern the existence of a current account deficit will create a shortage of dollars, but at the same time raising concerns about the long term dependence on such flows. Brazil received $37.2 billion of foreign direct investment in the 12 months through April, a record annual inflow.br /br /br /a href=”http://2.bp.blogspot.com/_ngczZkrw340/SC7BhbMkCBI/AAAAAAAAFo8/uQGKMd5Wbxs/s1600-h/brazil+fx2.jpg”img id=”BLOGGER_PHOTO_ID_5201307399639795730″ style=”DISPLAY: block; MARGIN: 0px auto 10px; CURSOR: hand; TEXT-ALIGN: center” alt=”" src=”http://2.bp.blogspot.com/_ngczZkrw340/SC7BhbMkCBI/AAAAAAAAFo8/uQGKMd5Wbxs/s320/brazil+fx2.jpg” border=”0″ //adiv class=”blogger-post-footer”img width=’1′ height=’1′ src=’https://blogger.googleusercontent.com/tracker/34399666-1214907843692912969?l=brazileconomy.blogspot.com’ alt=” //div
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 About Edward Hugh (http://globaleconomydoesmatter.blogspot.com)
Edward Hugh is a macro economist, who specializes in growth and productivity theory, demographic processes and their impact on macro performance, and the underlying dynamics of migration flows. Hugh is a founding member and regular contributor to a number of economics weblogs, including Global Economy Matters, Demography Matters and a number of others. Edward 'the bonobo' Hugh is a Catalan economist of British extraction based in Barcelona. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again". He is currently working on a book with the provisional working title "Population, the Ultimate Non-renewable Resource". Edward also writes regularly for the demography blog Demography Matters. He also contributes to the Indian Economy blog . His personal weblog is Bonobo Land . Edward's website can be found at EdwardHugh.net. Edward follows in detail the Indian, Italian, Spanish, German and Japanese economies. He also has a more than a passing interest in the economies of Turkey and Brazil and in the emerging economies of Eastern Europe. |
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