(MENAFN- The Rio Times) Brazil's latest economic snapshot tells a story of progress on the surface - and vulnerability underneath. Prices are finally slowing, foreign investors are pouring money in, but the country's external accounts are bleeding faster than they have in months.

In September, Brazil's current account deficit widened to $9.77 billion, nearly double the gap in August. That means the nation spent far more on imports and services than it earned from exports, a worrying sign for a country that depends heavily on foreign capital to fund its growth.

At the same time, foreign direct investment surged to $10.67 billion, the strongest in months and well above expectations, showing that international companies still see Brazil as a long-term bet - particularly in agribusiness, clean energy, and infrastructure.

Inflation offered some comfort. Consumer prices rose just 0.18% in October's mid-month reading, slowing sharply from 0.48% in September.

Annual inflation eased to 4.94%, comfortably within the central bank's target range after months of pressure. Lower food and fuel costs helped - and gave policymakers space to consider more interest rate cuts to spur growth.



The broader picture, though, is more complex. Brazil 's economy is cooling without collapsing, but its growth model still leans on global appetite for its exports and the goodwill of foreign investors to fill financing gaps.

When the world turns cautious, as it often does, that dependence can quickly become a liability. The story behind the numbers is one of structural imbalance.

The country has managed to tame inflation and attract green investment, but it has not yet built enough internal savings or productivity to reduce its reliance on external cash. As a result, even good news comes with an asterisk: Brazil looks stable - until the flow of global capital slows.

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