Brazil’s current account deficit was $3.5 billion in May, the worst result for the month in eight years, according to central bank figures released on Friday.
Brazil, a strong commodity producer, has seen its exports increase, but imports have increased faster, owing to higher prices for products such as fuel and fertilizers.
The trade balance surplus was $3.4 billion in May, down 53.3% from the same month last year.
The factor payments deficit increased by $1.4 billion in the month, while the services deficit increased by $743 million, according to the central bank.
Foreign direct investment, on the other hand, totaled $4.5 billion in May, more than doubling from $2.2 billion the previous year.
According to the central bank, investors withdrew $3.9 billion from Brazilian markets in May, with $3.2 billion in stock outflows and $702 million in bond outflows.
The current account deficit reached 1.89% of GDP in a year, while foreign direct investment reached 3.45% of GDP, according to the central bank.
