I - Balance of payments - July 2014
In the month of July, the balance of payments posted a surplus of US$5.2 billion. The current account closed with a deficit of US$6 billion in the month, accumulating US$78.4 billion over the 12-month period, equivalent to 3.45% of GDP. In the financial account, it should be highlighted net inflows of foreign direct investments (FDI), US$5.9 billion.
The service account registered a US$4.5 billion deficit in July, 12.2% above the result for the same month of 2013. Net outlays on international travel reached US$1.6 billion, down 1.7% compared to the same month of the previous year. This result was generated by an increase of 46.1% in foreign travelers' expenditures in Brazil, coupled with a 10.1% expansion in Brazilian tourists' expenditures traveling abroad. Net spending on transportation totaled US$680 million in July, reflecting a 30.8% downturn when viewed against the same month of 2013. Among other items in the service account, particular mention should be made of increased net spending on equipment rentals, 53.2%, computer and information services, 22.8%, royalties and licenses, 21.1%, and insurance, 15.2%, using the same basis of comparison.
Net income remittances abroad totaled US$3.2 billion in the month, 2.4% less than in July 2013. Net remittances of profits and dividends totaled US$1.1 billion, a falloff of 9% when viewed against the same period of 2013. Net outlays on interest reached US$2.1 billion, remaining stable when compared to the same period of the previous year. Net outflows of income on direct investments reached US$717 million, against US$1.1 billion in the same month of 2013. Net remittances of income on portfolio investments totaled US$2 billion, up 31.2% using the same basis of comparison, while income outlays on other investments reached US$512 million, down 28.8%.
During the month, unrequited transfers showed net inflows of US$170 million, 38.4% less than the July 2013 figure of US$276 million. Gross inflows of income for the maintenance of residents totaled US$165 million, a downturn of 7% in the same period of comparison.
Direct Brazilian investments abroad generated net returns of US$2.4 billion in July. Net acquisitions of equity capital in companies abroad totaled US$775 million, while net outflows generated by intercompany loans reached US$3.2 billion.
In the month under analysis, net inflows of FDI reached US$5.9 billion, encompassing US$3.5 billion in net inflows of equity capital participation in companies in the country, and US$2.4 billion in net disbursements of intercompany loans. Over the 12-month period ended in July, net inflows of FDI reached US$64 billion, equivalent to 2.82% of GDP.
Foreign portfolio investments posted net outflows of US$2.1 billion in July, composed of net outflows of US$5 million in stocks and US$2.1 billion in fixed income securities. Investments in fixed income securities negotiated in the country added up to net inflows of US$680 million. Public sector bonds negotiated abroad posted net amortizations of US$465 million. Net amortizations of notes and commercial papers reached US$2.4 billion in the month, with disbursements of US$559 million and amortizations of US$2.9 billion. Disbursements on short-term fixed income securities negotiated abroad reached US$97 million.
Other Brazilian investments registered net returns abroad totaling US$2.1 billion in July, including reductions of US$9.9 billion in the balance of deposits maintained abroad by Brazilian banks and expansion of US$1.1 billion in the deposits of nonfinancial institutions, among other factors. Net concessions of short-term loans and commercial credits abroad reached US$6.7 billion in the month.
Other foreign investments in the country showed net inflows of US$3 billion in July. Suppliers' credits registered net amortizations of US$1.7 billion, concentrated in short-term operations. Long-term loans added up to net inflows of US$568 million, with a particularly strong result under direct loans, US$1 billion.
II - International reserves
Viewed under the liquidity concept, international reserves totaled US$379 billion in July, a reduction of US$1.5 billion compared to the previous month. In the month, the stock of repurchase lines totaled US$2.3 billion, a falloff of US$4.8 billion compared to the June position. Revenues on reserves totaled US$256 million. Variations by prices and parities reduced the reserve stock by US$354 million and US$1.6 billion, respectively. In the cash concept, the stock of reserves reached US$376.8 billion in July, up US$3.3 billion compared to the previous month.
III - External debt
The gross external debt position estimated for July totaled US$328.4 billion, an increase of US$8.3 billion compared to the March 2014 position. The estimated long-term external debt reached US$287.7 billion, up US$5.6 billion, while the short-term stock totaled US$40.8 billion, an increase of US$2.7 billion in relation to the 2014 first quarter position.
The variation in the long-term external debt is explained by net inflows of loans taken by the financial and nonfinancial sectors, with respective total amounts of US$1.9 billion and US$3.5 billion; and net issuances of debt bonds by the government and nonfinancial sector in respective amounts of US$868 million and US$647 million. The variation by parities reduced the stock by US$446 million. Variations in the short-term external debt were generated by loans taken by the financial and nonfinancial sectors in respective amounts of US$1.9 billion and US$801 million.