UPDATE 2-Brazil current account deficit hits record high for May

martes 24 de junio de 2014 11:37 GYT

(Adds anticipated World Cup impact on foreign accounts and estimates for June, paragraph 13)

BRASILIA, June 24 (Reuters) - Brazil's current account deficit was the widest on record for the month of May as Brazilians spent more on international travel and foreign companies sent profits and dividends to their headquarters abroad.

Brazil had a current account deficit of $6.635 billion in May, above the previous record high of $6.356 billion for that month posted last year, central bank data showed on Tuesday.

The country had been expected to post a deficit of $6.65 billion, according to the median forecast of 16 analysts in a Reuters poll. Brazil's current account deficit in April was $8.291 billion.

Foreign direct investment, which falls in the capital account of the balance of payments, was $5.963 billion in May, above market expectations of $5.2 billion.

For 2014, the central bank Tuesday saw FDI of $63 billion, which fell short of the current account deficit estimate of $80 billion.

If those forecasts materialize, it would mark the second year in a row that FDI falls short of covering the current account gap.

For many years prior, FDI inflows were sufficient to finance current account deficits in Brazil.

The current account is a country's widest measurement of foreign exchange flows, including trade, services, interest payments and remittances.   Continuación...