BRASILIA, Oct 25 (Reuters) - Brazil’s current account deficit shrank unexpectedly in September to its smallest for the month in nine years, central bank data showed on Tuesday.
The current account gap narrowed to $465 million from $579 million in August, a smaller gap than the $1.850 billion shortfall forecast in a Reuters poll.
The country also attracted $5.233 billion in foreign direct investment in September, below forecasts in a Reuters poll for an inflow of $6.5 billion.
A recession in its second year has dragged down imports and profit remittances, the central bank said.
The fast reduction of Brazil’s current account deficit has contributed to a recent strengthening of the exchange rate to the highest in more than one year.
In the first nine months of the year, the deficit totaled $13.5 billion, well below the $49.2 billion recorded in the same period of last year.
The deficit in the 12 months through September equaled to 1.31 percent of gross domestic product, down from 4.09 percent in September 2015.
Reporting by Marcela Ayres; Writing by Silvio Cascione; Editing by Chizu Nomiyama and Andrea Ricci