In April 2015, the Central Bank of Brazil (CBB) started publishing statistics on the foreign sector of the Brazilian economy in accordance with the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6). Previously, these statistics had been compiled in accordance with the Fifth Edition of the Balance of Payments Manual (BPM5). The historical series of the balance of payments under the BPM5 were discontinued.
International methodological standards establish the guidelines for the compilation and release of macroeconomic accounts. In addition to ensure consistency among several macroeconomic statistics, they also have the purpose of allowing comparability among countries. At the same time, BPM6 takes into account the economic and financial developments in the world economy over the last fifteen years.
BPM6 defines the Balance of Payments (BOP) as the macroeconomic statistical statement that summarizes the transactions between residents and nonresidents during a period. It consists of the goods and services account, the primary income account and the secondary income account (which are the current account's components), the capital account, and the financial account. The principal changes involves: the BOP presentational format; the names of some accounts; sign convention; and concepts. Further details regarding statistics on the Brazilian external sector under the BPM6 methodological standard are available on http://www.bcb.gov.br/?BALANCEPAY
I - Balance of payments - May 2015
In May, the current account posted a deficit of US$3.4 billion, accumulating a negative balance of US$95.7 billion over the last 12 months, equivalent to 4.39% of the GDP. In the financial account, net inflows exceeded net outflows by US$3.2 billion, highlighting increases of US$6.6 billion in net inflows of direct investments and US$3.1 billion in portfolio investments - liabilities.
The service account registered net expenditures of US$3.4 billion in the month, a 23.1% decrease in comparison with the results from May 2014, at the same time that net expenditures on transportation dropped by 42.5% to US$489 million. International travel posted net expenditures of US$998 million, a reduction of 42.5% when compared to May 2014, as a result of respective declines of 37.4% and 20.6% under Brazilian tourists' expenditures abroad and foreign travelers' expenditures in Brazil. It should be highlighted expansion under net expenditures on equipment rentals, 20.3%, and declines under net expenditures on intellectual property services, 32.5%, and on telecommunications, computing and information technology, 23.7%.
Primary income net expenditures reached US$2.7 billion in the month, a reduction of 34.3% in comparison with May 2014. Net expenditures on profits and dividends dropped by 41.1% in the month to US$1.9 billion, as compared with US$3.3 billion in the corresponding month of the previous year, whereas net expenditures on interests fell by 5.9% to US$796 million in the same comparison basis. Net outflows of earnings on direct investments came to US$1.8 billion, 35.9% lower than in May 2014. Net expenditures related to income on portfolio investments totaled US$868 million, comprising net expenditures on profits and dividends, US$472 million; interests on fixed-income securities negotiated on foreign markets, US$323 million, and on the domestic market, US$73 million. Net expenditures related to income on other investments added up to US$306 million, dropping by 22% when compared to May of the previous year, while earnings on reserves reached US$214 million.
The secondary income account posted net inflows of US$165 million. Income on personal transfers reached US$211 million in May, 28.4% higher than in the same month of the previous year.
Direct investments abroad totaled net outflows of US$857 million, comprising US$867 million in equity capital and US$311 million in reinvestments of earnings, and returns of US$10 million related to intercompany loans.
Direct investments in the country increased by US$6.6 billion, of which US$6 billion in equity capital, including US$675 million related to reinvestment of earnings, and US$618 million related to intercompany loans. In 12 months, net inflows of direct investments totaled US$83 billion, equivalent to 3.81% of GDP.
Portfolio investment - liabilities posted net inflows of US$3.1 billion in May, comprising net inflows of US$794 million in stocks, US$1.3 billion in investment funds, and US$1.1 billion in fixed-income securities. Fixed-income securities negotiated in the country totaled net inflows of US$1.1 billion. Operations with sovereign bonds negotiated abroad totaled amortizations of US$47 million. The remaining long-term fixed-income securities negotiated abroad posted net amortizations of US$27 million, while short-term securities registered net inflows of US$63 million.
Other investment - assets increased by US$237 million, comprising an expansion of US$785 million in deposits held by nonfinancial companies and US$1.6 billion in deposits held by Brazilian banks abroad. Trade credits and advances grew by US$988 million in May.
Other investment - liabilities turned in net amortizations of US$250 million. Net inflows of trade credits and advances amounted to US$915 million, focused on short-term operations. Loans registered outflows of US$1 billion.
II - International reserves
International reserves in the liquidity concept totaled US$371.7 billion in May, a decrease of US$1.3 billion from the previous month. In May, the stock of repurchase lines reached US$5.1 billion, a decline of US$3.5 billion over April. Income related to earnings on reserves amounted to US$214 million. Price and parity variations reduced the stock by US$63 million and US$1.5 billion, respectively. In the cash basis, the stock of reserves reached US$366.6 billion in May, an increase of US$2.2 billion when compared to the previous month.
III - External debt
The estimated gross external debt position for May totaled US$351 billion, an increase of US$2.4 billion in relation to the amount calculated for March 2015. The estimated long-term external debt reached US$290.4 billion, an increase of US$123 million, while the short-term debt totaled US$60.6 billion, an increase of US$2.2 billion in the same comparison 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$1.7 billion, financial sector's amortizations, US$1.6 billion, coupled with increases consequent upon parity variations, US$295 million. The variation of the short-term external debt during the period was mainly explained by short-term loans taken by the financial and nonfinancial sectors, US$1.1 billion and US $ 915 million, respectively.