I - Balance of payments - April 2016
In April, the current account posted a surplus of US$412 million, accumulating a negative balance of US$34.1 billion over the last twelve months, which corresponds to 1.97% of GDP. In the financial account, net outflows exceeded net inflows by US$784 million, highlighting net inflows of US$6.8 billion under the modality of direct investments in Brazil.
The service account registered net expenditures of US$2.5 billion in the month, a decline of 27.3% as compared to April 2015. Net expenditures on transport dropped 57.2% against the same month of the previous year, reaching US$263 million. In the same comparison basis, the international travel item posted net expenditures of US$602 million, dropping by 49.9%, reflecting an increase of 6.9% under foreign travelers' expenditures in Brazil and a decrease of 34.5% under Brazilian tourists' expenditures abroad. Net expenditures on intellectual property services grew by 92.1% as compared to April 2015.
Primary income net expenditures reached US$1.9 billion in the month, dropping by 48.5% as compared to April 2015. Net expenditures on profits and dividends totaled US$574 million, falling by 75.7% as compared to the same month of the previous year, as a result of an increase of 114.4% under revenues and a decline of 49% under expenditures; while net expenditures on interest totaled US$1.4 billion, falling by 2.2% as compared to April 2015. Net outflows related to income on direct investments totaled US$996 million, dropping by 61.3% as compared to the result observed in April 2015. Net expenditures regarding income on portfolio investments totaled US$560 million, comprising net expenditures on profits and dividends, US$93 million; interest on securities traded on the foreign markets, US$454 million; and interest on securities traded on the domestic market, US$13 million. Net expenditures regarding income on other investments reached US$656 million, up 13.5% compared to April 2015, whereas income related to earnings on reserves increased by 21.9%.
The secondary income account posted net inflows of US$219 million in April 2016. Net revenues from personal transfers reached US$93 million in the month, 48.6% above the amount observed in April of the previous year.
Direct investments abroad grew by US$1.2 billion in the month, mostly focused on equity capital participation, including reinvestment of earnings.
In the month, net inflows of direct investments reached US$6.8 billion, of which US$4.8 billion in equity capital participation, including US$609 million referring to reinvestments of earnings, and US$2 billion related to intercompany loans. Over twelve months, net inflows of direct investments into Brazil totaled US$79.9 billion, equivalent to 4.61% of GDP.
The return of portfolio investments into Brazil reached US$1.1 billion in the month, with emphasis on net sales abroad of US$1.2 billion in stocks.
Portfolio investments - liabilities registered net inflows of US$662 million in the month, a decrease of US$6 billion as compared to the same period of the previous year. Investments in stocks and investment funds posted net inflows of US$1.2 billion and US$424 million, respectively. It should be highlighted net outflows of fixed-income securities, US$919 million, consisting of net outflows of US$125 million in securities traded on the domestic market; and US$794 million in securities traded on the international market, mainly long-term transactions.
Other investment - assets rose by US$6.1 billion, comprising an expansion of US$3.7 billion in deposits held by Brazilian banks abroad and an expansion of US$594 million in deposits held by nonfinancial companies. Trade credits and advances grew by US$1.9 billion in April.
Other investment - liabilities posted net amortizations of US$961 million. Trade credits and advances grew by US$2 billion, mainly short-term transactions. Net amortizations of long-term loans totaled US$378 million, while net amortizations of short-term loans totaled US$736 million in the month.
II - International reserves
International reserves according to the liquidity concept totaled US$376.7 billion in April 2016, an increase of US$1.5 billion compared to the previous month. The stock of repurchase lines reached US$14.5 billion, falling by US$3 billion as compared to the March 2016 position. Income regarding earnings on reserves added up to US$249 million in the same period. Price variations reduced the debt stock by US$105 million, while parity variations raised it by US$1.2 billion. In the cash concept, the stock of reserves reached US$362.2 billion in April, increasing by US$4.5 billion when compared to the previous month.
III - External debt
The estimated gross external debt for April totaled US$337.8 billion, a decrease of US$400 million as compared to the estimated amount for March 2016. The estimated long-term external debt reached US$274.8 billion, an increase of US$263 million, while the short-term indebtedness totaled US$63 billion, a decrease of US$662 million in the same period.
Among the factors underlying the variation of the long-term external debt, it is worth highlighting the amortization of loans by the financial and nonfinancial sectors, totaling US$428 million and US$308 million, respectively.