Kelly Oliveira        Reporter Agência Brasil

Brasília – The Brazilian Central Bank now forecasts a smaller current transactions deficit for the year of $56 billion, down from $68 billion in its prior forecast. So far this year, up to May, the deficit has reached $20.9 billion (compared to $22.6 billion during the same period last year). This account measures sales and purchases of goods and services. Within this account, the Central Bank estimate is for a 2012 deficit of $39 billion in services (the prior estimate was $42.1 billion).

The Brazilian Central Bank now forecasts GDP growth in 2012 of 2.36%, compared to a prior forecast of 2.56%.

The Brazilian Central Bank now forecasts a foreign trade surplus in 2012 of $18 billion, compared to a prior forecast of $21 billion. This is the country’s foreign trade account (“balança commercial”).

Estimates for the revenue account (“contas de renda”), which includes remittances of profits and dividends along with interest payments, at the Central Bank for the year is for a deficit of $37.9 billion, down from $49.6 billion.

The Central Bank estimate for direct foreign investment this year (that is, money that will cover the current transactions deficit) is $50 billion. In 2011, direct foreign investment reached $66.6 billion.

Allen Bennett – translator/editor The News in English

Link - Banco Central reduz projeção para déficit nas contas externas este ano