Brazil posts current account deficit of $4.6 billion in October

BRASILIA (Reuters) - Brazil's current account deficit in October came slightly lower than expected, central bank data showed on Friday, in the wake of a better trade balance surplus and a significant drop in the remittance of profits and dividends.

The deficit was $4.6 billion in October, below a $4.9 billion shortfall forecast in a Reuters poll with economists.

The trade surplus rose by $1.2 billion from the same month in 2021, while the factor payments deficit narrowed by $1.1 billion, affected by a 32% decrease in profits and dividends sent abroad.

Year-to-date, the current account deficit reached $44 billion, approaching the $46.4 billion deficit recorded for the entire year of 2021.

The data was affected by a methodological review by the central bank that increased the shortfall from last year and this year to September.

Meanwhile, foreign direct investment in October totaled $5.5 billion, lower than the $6.5 billion projected by economists.

Year-to-date, however, FDI reached $74 billion, handily surpassing the full-year 2021 amount of $46.4 billion.

The central bank has attributed the improvement to the resumption of projects that had been postponed due to the pandemic and higher demand for investments in sectors such as energy, technology, and oil and gas.

(Reporting by Marcela Ayres; Editing by Steven Grattan)