Brasília - Brazil's current account (the total of the trade balance, international travel, interest payments, and profit remittances) registered a US$ 1.761 billion surplus in August, compared with a US$ 1.212 billion surplus in August, 2003. It was the fourth consecutive positive month. The cumulative surplus between January and August measured US$ 7.990 billion, nearly double the US$ 4.016 billion surplus for all of 2003.

These figures were announced yesterday (22) by the Central Bank's (BC) Director of Economic Policy, Eduardo Loyo, during a presentation of the monthly "External Sector" report. He said that the numbers reflect the country's "strong export capacity" and the "already quite vigorous" economic recovery. As an example of this, he cited last month's US$ 3.4 billion trade surplus.

The Director pointed out, however, that there is no plan to keep the balance of payments surplus this high, even though the positive results put the country in a "comfortable position" in macroeconomic terms. In his view, the surplus should end the year at around US$ 6.7 billion, falling next year to around US$ 100 million, in consequence of the anticipated increase in imports.

The BC estimates that exports will amount to US$ 94.5 billion in 2005, up 5% from this year's level. Imports are expected to grow 16.7%, from US$ 60 billion in 2004 to US$ 70 billion in 2005.

Agência Brasil
Reporter: Stenio Ribeiro
Translator: David Silberstein
09/23/2004