I - Balance of payments - July 2015
The current account turned in a deficit of US$6.2 billion in July, accumulating a deficit of US$89.4 billion over the last 12 months, equivalent to 4.34% of GDP. As for the financial account, net inflows exceeded net outflows by US$5.7 billion, highlighting net inflows of US$6 billion under the modality of direct investments in the country.
The service account registered net expenditures of US$3.3 billion in the month, a fall of 24.2% in comparison with July 2014. In the same comparison basis, net expenditures on transportation dropped by 22.5% to US$513 million. The item international travel registered net expenditures of US$1.2 billion, 25.5% below the value registered in the same month of the previous year, as a result of declines of 30.4% in Brazilian tourists' expenditures abroad and 40.4% in foreign travelers' expenditures in Brazil. It is worth mentioning that the World Cup held in Brazil from June to July 2014 contributed to raise the comparison basis of foreign tourists' expenditures in the country. Net expenditures on equipment rentals totaled US$1.7 billion, a reduction of 28.1% compared with July 2014. In the same comparison basis, net expenditures on telecommunications, computing and information rose by 27.9%, while net expenditures on intellectual property services fell by 26.8%.
Primary income net expenditures reached US$5.2 billion in the month, a reduction of 19.3% in comparison with July 2014. Net expenditures on profits and dividends totaled US$623 million, compared with US$1.2 billion in the corresponding month of the previous year. Net interest expenditures totaled US$4.6 billion, 13% lower than in July 2014. Net outflows related to income on direct investments totaled US$671 million, a reduction of 12.7% in comparison with July 2014. Net expenditures regarding income on portfolio investments totaled US$4.4 billion, consisting of net expenditures on profits and dividends, US$285 million; and interests on securities traded on the foreign and domestic markets, US$1.1 and US$2.9 billion, respectively. Net expenditures regarding income on other investments fell to US$426 million, 25.8% lower than in July 2014, while earnings on reserves reached US$212 million.
The secondary income account posted net inflows of US$241 million. Gross revenues related to personal transfers reached US$228 million in July, 27.1% above the result observed in the same month of the previous year.
Direct investments abroad totaled net remittances of US$1.5 billion, including US$1.6 billion under equity capital and US$483 million under reinvestments of earnings; and returns of US$156 million from intercompany loans.
Direct investments in the country increased by US$6 billion, of which US$3.5 billion in equity capital, including US$219 million related to reinvestments of earnings; and US$2.5 billion from intercompany loans. In 12 months, net inflows of direct investments in the country totaled US$78.4 billion, equivalent to 3.81% of GDP.
Portfolio investment - liabilities totaled outflows of US$4.1 billion in June, consisting of net remittances of US$4.4 billion in fixed-income securities, US$390 million in stocks, and net inflows of US$624 million in investment funds. Fixed-income securities traded in the country totaled net remittances of US$3 billion. Operations with sovereign bonds traded abroad totaled amortizations of US$74 million. Other long-term fixed-income securities traded abroad turned in net amortizations of US$1.1 billion, while short-term securities posted net outflows of US$164 million.
Other investment - assets dropped by US$3.2 billion, comprising an expansion of US$957 million in deposits held by nonfinancial companies, and a reduction of US$7.6 billion in deposits held by Brazilian banks abroad. Trade credits and advances grew by US$3.5 billion in July.
Other investment - liabilities posted net inflows of US$4.8 billion. Net inflows of trade credits and advances reached US$4 billion, focused on short-term operations. Loans totaled net inflows of US$800 million.
II - International reserves
International reserves according to the liquidity concept totaled US$370.8 billion in July 2015, a reduction of US$1.4 billion in comparison to the previous month. In the month, the stock of repurchase lines reached US$2.5 billion, a decrease of US$1 billion in relation to the June 2015 position. Income related to earnings on reserves totaled US$212 million. Price variations raised the stock by US$334 million, while parity variations reduced it by US$2.1 billion. In the cash concept, the stock of reserves reached US$ $368.3 billion in July, a decrease of US$417 million in relation to the previous month.
III - External debt
The gross external debt position estimated for July totaled US$343.2 billion, a reduction of US$5.4 billion in relation to the amount calculated for March 2015. The estimated long-term external debt reached US$287.4 billion, a reduction of US$2.9 billion, whereas the short-term indebtedness totaled US$55.9 billion, a decline of US$2.5 billion in the same period.
Among the factors underlying the variation of the long-term external debt in the period, it should be highlighted loans taken by the nonfinancial sector, US$2.8 billion, coupled with the reduction consequent upon the parity variation, US$231 million. The variation of the short-term external debt in the period is mainly explained by loans taken by the financial sector, US$2.7 billion.