Brazils current account surplus narrowed in May
and the central bank said it reduced the 2006 forecast as
foreign businesses repatriated profits. The surplus of $475
million, or 1.5% of GDP, compares with a $597 million surplus
last year. The central banks head of researcg Altamir
Lopes said the bank cut its prediction for the 2006 figure to
$8.1 billion from $8.5 billion because it expects companies
based abroad to take advantage of a stronger real to pull out
profits. Foreign direct investment beat market expectations to
grow by $1.6 billion last month.
Panama expects real GDP growth of 7.5%-8% this year after a
stronger-than-expected outturn in the first quarter.
Nigerian finance minister Ngozi Okonjo-Iweala will take over
as foreign minister, while retaining some of her previous
responsibilities. Minister of State for Finance Nenadi Usman
will fill the vacancy.
The Slovakian central bank dipped into its 13
billion of foreign exchanged reserves to intervene on behalf of
its local currency to slow depreciation as foreign investors
Turkish finance minister Kemal Unakitan pledged to end a 15%
capital gains tax on foreign investors purchases of
government bonds to try to spur appetite for government debt
amid a crisis in confidence.
Higher revenue collection and stronger economic growth means
that the Indonesian budget deficit will narrow by an additional
0.1 percentage points to 1.4% of GDP, according to Finance
Minister Sri Mulyani Indrawati.
Malaysian inflation eased to an annual 3.9% in May from 4.6%
the previous month.