Brazil's current account deficit climbs to 3.6% of GDP during March

Monday, April 28th 2014 - 08:42 UTC

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Brazil's current account deficit narrowed in March after an improvement in the trade balance, but it was still the second largest on record for that month, central bank data showed. The country posted a current account deficit of 6.248 billion last month, down from 7.445bn in February. Read full article

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ChrisR
“Strong levels of foreign direct investment shows that foreign investors remain confident about Brazil,” Maciel said.

Yes, and they kept investing when The Liar Mantega stated (in 2012) that growth was going to be 4.7% in 2013. Those that invested had to cope with a depleted cash input of 50%, that’s FIFTY PERCENT of what you expected as a return when Mantega guess for that was what it was, turned out to be 50 odd percent wrong.

I was just about to invest in Brazil until I worked that out. Damn lucky escape.

But I just love this logic:
“The deficit will remain stable at around 3.6% of GDP this year in part due to the weaker Real, Tulio Maciel, the central bank's chief of economic research, told reporters.”

Let’s just look at the logic here: the real is weaker making imports dearer and the people like imported goods better than home produced ones so the import bill is going to “increase” in Real terms. With prats like this guy and The Liar Mantega, poor old Brazil are in for a difficult time for the next few years.

It’s almost as if the Finance Ministry have been using TMBOA for advice!
Apr 28th, 2014 - 02:10 pm - Link - Report abuse 0
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