Brazil's currrent account defecit soars

Figures released by the Central Bank of Brazil show that the country's current account deficit in 1997 rose to nearly thirty-four billion dollars, an increase of almost forty-per-cent on the previous year.

Some of the increase stemmed from Brazil's growing trade deficit, which rose in 1997 to eight-and-a-half billion dollars, compared to five-and-a-half billion dollars in 1996.

Correspondents say the trade deficit was itself largely caused by the overvaluation of Brazil's currency, the Real.

From the newsroom of the BBC World Service