BRASILIA: Brazil posted a lower-than-expected current account deficit in February, showed central bank data on Monday, mainly due to a decrease in factor payments.

The country’s current account deficit reached $2.8 billion in February, lower than the $5 billion shortfall forecast in a Reuters poll of economists.

The deficit in factor payments fell 33.5% compared to the same month last year, totalling $3.4 billion, due to a decline in profits and dividends sent abroad. The deficit in the services account decreased by 27.6% compared to February 2022, totalling $2 billion.

Meanwhile, the positive balance of the trade balance was $2.5 billion, compared to $3.6 billion a year ago. Foreign direct investment totalled $6.5 billion in February, missing the Reuters poll estimate of $10.2 billion.

Central bank data also showed that investors made a net portfolio investment of $553 million in Brazilian markets in February, down from $1.8 billion in the same month last year. Inflows in stocks and bonds reached $236 million and $317, respectively.