Brazil's February external gap narrows on trade gains

BRASILIA, March 27 (Reuters) - Brazil's current account deficit totaled $5.6 billion in February, central bank data showed on Friday, slightly wider than the $5.4 billion shortfall expected by economists in a Reuters poll.

BY THE NUMBERS

• The shortfall was sharply narrower than the $10.2 billion recorded a year earlier, mainly reflecting an improved trade balance, with the goods surplus rising by $4.6 billion.

• The 12-month current account deficit narrowed to $63.4 billion, equivalent to 2.71% of gross domestic product (GDP), from 2.94% the previous month.

• The central bank said on Thursday it expects the current account deficit to shrink further this year, ending 2026 at $58 billion.

• The outlook is based on export growth outpacing imports over the year, driven by higher shipment volumes and, chiefly, stronger prices.

• Foreign direct investment (FDI) totaled $6.8 billion in February, below the $7.6 billion forecast by economists.

• FDI over 12 months reached $75.8 billion (3.24% of GDP), while the central bank expects inflows of $70 billion for the full year.