Brazil FDI inflows beat forecasts in November, top full-year projection

BRASILIA, Dec 19 (Reuters) - Brazil's foreign direct investment (FDI) inflows surprised to the upside in November, lifting year-to-date totals beyond the central bank's full-year forecast, official data showed on Friday.

Latin America's largest economy attracted $9.82 billion in FDI during the month, well above the $6.5 billion expected by economists in a Reuters poll.

FDI reached $84.16 billion in the year through November, up 14% from the same period last year and already exceeding the central bank's full-year projection of $75 billion, which had been revised on Thursday from $70 billion before.

The central bank said its forecast was consistent with FDI inflows equivalent to 3.3% of gross domestic product (GDP), close to the average seen since 2021 and slightly below the pre-pandemic decade's 3.7%.

Over the 12 months to November, however, FDI totaled 3.76% of GDP, more than covering a current account deficit of 3.47% of GDP.

Brazil's current account deficit has widened sharply this year, mainly due to a smaller trade surplus amid faster import growth driven by a resilient economy.

In November alone, the current account posted a $4.94 billion deficit, broadly in line with the $4.95 billion shortfall forecast in the Reuters poll but wider than the $4.42 billion gap recorded a year earlier.