UPDATE 2-Brazil posts current account deficit again in Jan

Mon Feb 25, 2008 9:51am EST
(Recasts, adds details on trade, remittances)
BRASILIA, Feb 25 (Reuters) - Brazil posted a current account deficit in January for the third month in a row as foreign companies repatriated more dividends and profits overseas and a weak U.S. dollar led to a surge in imports, central bank data showed on Monday.
The current account balance, the broadest measure of a country's foreign transactions, was in deficit by $4.232 billion in January. That compared with a surplus of $286 million in January 2007 and a deficit of $699 million in December.
The country was expected to post a deficit of $2.6 billion in January, according to the median forecast of 15 analysts surveyed by Reuters. The forecasts ranged from a deficit of $3.5 billion to a deficit of $300 million.
The current account balance tracks a country's net flow of external transactions, including foreign trade, interest payments and services such as tourism. It is used to gauge a country's dependence on foreign capital.
In the 12 months through January, Brazil posted a current account deficit equal to 0.09 percent of gross domestic product compared with a surplus equal to 0.26 percent of GDP in the 12 months through December.
A local currency that is strengthening against the U.S. dollar has helped trigger a surge in imports over the last year, putting pressure on the current account. Corporate remittances are also on the rise as foreign companies send more profits and dividends overseas.
As a result, the central bank expects another current account deficit in February, totaling $1.7 billion.
The trade surplus narrowed to $944 million in January from $2.52 billion in the same month a year ago. Imports surged to $12.33 billion last month from $8.47 billion a year earlier while exports grew to $13.28 billion from $10.98 billion.
Corporate remittances soared 125.6 percent in January from the previous year, to $4.3 billion. The central bank said last month it expects remittances to total $20 billion this year.
Foreign direct investment in Brazil, Latin America's largest economy, rose in January to $4.814 billion from $2.422 billion in the same month in 2007. The central bank expects such investments to fall to $200 million in February.
Brazil's foreign currency assets surpassed liabilities for the first time ever in January, meaning the country became a net foreign creditor, the central bank said last week.
Brazil's current account surplus narrowed sharply last year and is expected to fall into deficit on an annual basis in 2008 for the first time since 2002.
(For central bank details on Brazil's current account figures for January, see: here) (Reporting by Isabel Versiani; Writing by Todd Benson; Editing by Chizu Nomiyama)