Brazil posts smaller-than-expected current account deficit in April

BRASILIA, May 26 (Reuters) - Brazil recorded a smaller-than-expected current account deficit in April, central bank data showed on Monday, helped by narrower shortfalls in the factor payments account and services accounts.

The deficit came in at $1.347 billion for the month, below the $2 billion gap forecast in a Reuters poll and also smaller than the $1.723 billion deficit posted in April last year.

Foreign direct investment (FDI) last month totalled $5.491 billion, beating market expectations of $4 billion.

Brazil's trade surplus also narrowed more modestly than in previous months, with a year-on-year decline of $352 million.

A shrinking trade surplus had been the main drag on the current account, as stronger import growth outpaced exports amid robust economic activity in Latin America's largest economy.

Meanwhile, the deficit in the factor payments account fell by $550 million in April, and the services gap narrowed by $98 million, the central bank said.

Over the 12 months through April, the current account deficit held nearly steady at 3.22% of gross domestic product, compared to 3.23% in the previous month.